If you were not studying economics, you could be doing one of the following: sleeping in (which you value at $5), playing cards with your friends (which you value at $10), or working (you would have earned an extra $8). The opportunity cost of studying economics is therefore:
A) $23.
B) $10.
C) $8.
D) $5.

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative foregone. In this case, playing cards with friends is valued at $10, which is the highest value among the alternatives.

If You Were Not Studying Economics, You Could Be Doing