Question

You can either go to a movie or go bowling. If you choose the movie,

you will spend far more on the movie then you would on bowling
you will have made the choice that has the most benefit
your opportunity cost is the amount of money you pay for the movie
your opportunity cost is the time and experience of bowling

Answer 1

Answer: It’s option D.

Explanation: You have no way of knowing how long either will take so it’s not option A. You don’t know the person’s opinion of whether bowling or watching a movie is better so you don’t know what will benefit them more, canceling out option B. When it comes down to option C and D, you can know the answer by knowing the definition of opportunity cost, which is what you don’t experience because of the choice you made to spend your time and experience something else. Therefore, canceling out option C and confirming that the answer is option D.

Answer 2

Answer: The Answer is D.) your opportunity cost is the time and experience of bowling

Explanation: Why it is NOT B or C is because,

Rationale: Second best. Opportunity cost is the experience you might have had if you had chosen your next-best option. In this example, the opportunity cost is the experience of the activity you did not choose – bowling.