Which of the following statements is true?
A)The opportunity cost of a decision is equal to the explicit cost in monetary terms.
B)The opportunity cost of a decision is the value of the best foregone alternative.
C)Some economic decisions have zero opportunity cost.
D)The opportunity cost of attending college is the same for all students at the same university but may differ among students at different universities.

Question

Which of the following statements is true?
A)​The opportunity cost of a decision is equal to the explicit cost in monetary terms.
B)​The opportunity cost of a decision is the value of the best foregone alternative.
C)​Some economic decisions have zero opportunity cost.
D)​The opportunity cost of attending college is the same for all students at the same university but may differ among students at different universities.

Quizplus · Accepted Answer

Opportunity cost is the value of the best foregone alternative. It takes into account both explicit costs (monetary costs) and implicit costs (non-monetary costs such as foregone time, effort, and the value of alternative opportunities). Therefore, statement A is false. Statement C is also false because every economic decision has an opportunity cost. Statement D is false because the opportunity cost of attending college may differ among students at the same university depending on factors such as scholarships, financial aid, and job opportunities.

Which of the Following Statements Is True