Which of the Following Is an Example of Opportunity Cost

question 94

Multiple Choice

Which of the following is an example of opportunity cost?

• A)The income that could have been earned by working full-time instead of going to college.
• B)The decline in the grades of a student athlete that occurs because she decides to spend more time practicing sports than on her academic work.
• C)The value of other things you could have done with the same time and money it cost you to go to the movies.
• D)The value of the next-best bundle of goods and services that could have been produced instead of using those resources to put astronauts on the moon.
• E)All of the choices are examples of opportunity cost.

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Definitions:

Fast Food Chain

A business that serves quick service food across multiple outlets, focusing on convenience, speed, and consistency.

Expanding Operations

The process of increasing a company's scope of activities, which can involve entering new markets, launching new products, or increasing production capacity.

Liquidation

The process of closing a business and distributing its assets to claimants, typically when a company is insolvent.

Sells Assets

Involves the process of disposing of or selling off physical or intangible assets by a company or individual.