2024 opportunity cost

What is opportunity cost?

• The price of the most expensive option

• The value of the next best alternative

• The cost of an item in money

• The total cost of all possible choices

What was Jenny's opportunity cost for going on a date with Adam?

• The time spent on the date

• Having breakfast with her sister

• The price of her grande chai tea latte

• The cost of her Uber ride

What does making a good decision involve according to the text?

• Comparing the benefits of the decision to the costs

• Choosing the option that is the most expensive

• Focusing only on the benefits

• Ignoring all costs

What are tradeoffs?

• Choosing between options where each has its own costs and benefits

• The costs of a decision

• Choosing between two bad options

• The benefits of a decision

Why might coffee be more expensive in a safer building?

• Because safer buildings cost more to maintain

• Because coffee tastes better in safer buildings

• Because the coffee shop owner wants to make more profit

• Because of the cost of installing safety features like sprinklers

What effect does a more stringent building code have on new businesses?

• It makes it easier to open new businesses

• It has no effect on new businesses

• It increases the cost of opening new businesses

• It decreases the overall number of businesses