Opportunity Cost: Definition & Examples

Opportunity Cost: Definition & Examples

by Eva Eikel

Home

Open in new tab

Copy link

Multiple Choice

Which of the following best describes opportunity cost?

• The value to you of the next best (alternative) action you could have taken.

• How much better off you are because you made a decision.

• How much you have to pay for the opportunity you choose.

• The dollar value of the decision you made.

Multiple Choice

During the time Mary spent studying macroeconomics, she could have instead either made brownies or played the piano. She thinks to herself that if she wasn't studying, then she would have made brownies. In this case, her opportunity cost of studying is equal to which of the following?

• The cost of the ingredients needed to make brownies.

• The value of playing the piano.

• The amount of time Mary spent studying.

• The value of making brownies, which is her next best altern

Multiple Choice

Assume that you have two hours to spend at the mall. You can either visit the bookstore or enjoy a movie at the theater. The opportunity cost of watching a movie is equivalent to which of the following?

• The profits created by the extra beef production.

• The market value of the extra beef.

• The amount by which corn production decreases.

• The amount of beef produced.

Multiple Choice

Josie decided to go to college full-time instead of working. Which of the following is the opportunity cost of going to college for Josie?

• The cost of college tuition.

• The income she will earn in the future for being a college graduate.

• The income she would have earned by working.

• The final benefit of graduating from college.