What is the opportunity cost of an action?
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B) The next best alternative forgone. The opportunity cost is not about money, time, or effort, but about the next best alternative that is given up.
If a farmer chooses to grow wheat instead of barley, what is the opportunity cost?
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C) The profit from growing barley. The opportunity cost is the benefit forgone from the next best alternative, which is growing barley in this case.
A student spends 2 hours studying for a maths test instead of playing football. What is the opportunity cost?
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B) The enjoyment from playing football. The opportunity cost is the benefit forgone from the next best alternative, which is playing football in this case.
A country decides to invest in education instead of military spending. What is the opportunity cost?
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D) The benefit of having a stronger military. The opportunity cost is the benefit forgone from the next best alternative, which is military spending in this case.
A business decides to produce 100 units of Product A instead of 50 units of Product B. If the profit from Product B is £500, what is the opportunity cost of producing Product A?
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A) £500. The opportunity cost is the profit forgone from the next best alternative, which is producing Product B in this case.
A person decides to work overtime instead of going to a concert. What is the opportunity cost?
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B) The enjoyment from the concert. The opportunity cost is the benefit forgone from the next best alternative, which is attending the concert in this case.
A government decides to build a new hospital instead of a new road. What is the opportunity cost?
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C) The benefit of having a new road. The opportunity cost is the benefit forgone from the next best alternative, which is building a new road in this case.
A student decides to study for an extra hour instead of watching a movie. What is the opportunity cost?
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B) The enjoyment from the movie. The opportunity cost is the benefit forgone from the next best alternative, which is watching the movie in this case.
A business decides to invest in new machinery instead of training its employees. What is the opportunity cost?
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C) The benefit of having better-trained employees. The opportunity cost is the benefit forgone from the next best alternative, which is training employees in this case.
A person decides to buy a new car instead of going on a holiday. What is the opportunity cost?
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B) The enjoyment from the holiday. The opportunity cost is the benefit forgone from the next best alternative, which is going on a holiday in this case.
A government decides to spend more on healthcare instead of defence. What is the opportunity cost?
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C) The benefit of having a stronger defence. The opportunity cost is the benefit forgone from the next best alternative, which is defence spending in this case.
A student decides to spend the weekend studying for an exam instead of going to a party. What is the opportunity cost?
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B) The enjoyment from the party. The opportunity cost is the benefit forgone from the next best alternative, which is attending the party in this case.
A business decides to expand its production line instead of investing in research and development. What is the opportunity cost?
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C) The benefit of having new products from R&D. The opportunity cost is the benefit forgone from the next best alternative, which is investing in R&D in this case.
A person decides to save money instead of buying a new phone. What is the opportunity cost?
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C) The convenience of having a new phone. The opportunity cost is the benefit forgone from the next best alternative, which is buying a new phone in this case.
A government decides to spend more on education instead of infrastructure. What is the opportunity cost?
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C) The benefit of having better infrastructure. The opportunity cost is the benefit forgone from the next best alternative, which is infrastructure spending in this case.