_____ costs include the time and money that could have been spent on another highly valued activity.
A) Opportunity
B) Marginal
C) Social
D) Total

Question

Quizplus · Accepted Answer

Opportunity costs refer to the benefits that are foregone while choosing one alternative over the other. When an individual chooses to spend time and money on a particular activity, they give up the opportunity to use that time and money for some other more valued activity. Thus, option A is the correct choice. On the other hand, marginal costs refer to the additional costs incurred by producing one extra unit or providing an additional service. Social costs refer to the total costs incurred by society, including externalities and the cost of public goods. Total costs refer to the sum of all costs, including fixed and variable costs.

_____ Costs Include the Time and Money That Could Have