You can either spend $100 on a new economics textbook or a new CD player.?

Question

If you choose to buy the new economics textbook, the opportunity cost is:

A) $100

B) The new CD player.

C) Both the $100 and the new CD player.

D) Impossible to determine.

Answer 1

B) The new CD player.

The opportunity cost is your next best alternative.  It's what you would give up having if you choose to buy the new economics textbook.  Often, we express it in terms of dollar values but a price is NOT to be confused with the opportunity cost.  Money simply gives us a way of comparing different options using the same base.

Answer 2

B) the cd player. If you have to buy one or the other, the opportunity cost is the cd player (the opportunity you could have to spend the money on that you give up to make the other choice.)

Answer 3

B

opportunity cost  : alternative forgone product

Answer 4

b, then go rent a economics book for free from the library