WorksheetsFinance Week 4 P2 Oppurtunity Cost
Total questions: 4
Worksheet time: 3mins
According to the meaning of opportunity cost, what
is sacrificed when a decision is taken?
An identical alternative
Any alternative
The least valuable alternative
The next best alternative
You have $15. You can either buy a new T-shirt or go to the movies with a friend. If you choose the T-shirt, what’s the opportunity cost?
A. The movie you didn’t watch
B. The money you spent
C. The T-shirt you bought
D. The store where you bought it
What is the primary reason opportunity costs are considered unavoidable?
Because everyone has unlimited resources
Because every choice involves a trade-off
Because they are mandated by law
Because they are only relevant to businesses
In the context of opportunity cost, what does "trade-off" mean?
Exchanging one item for another
Sacrificing one benefit to gain another
Selling goods in a market
Saving money in a bank account
