Question

One method for studying opportunity cost is to think in terms of

risk and ability.
pros and cons.
cost and benefit.
trial and error.

Answer 1

The answer is C) cost and benefit

Answer 2

Answer: cost and benefit.

In economics, opportunity cost represents the benefit that a person misses out on when choosing one alternative over another. In every decision we make, there is a cost involved, even when the cost is only the inability of picking another alternative instead.

Opportunity costs are often overlooked, but they are important to consider when making any decision. A way in which we can study opportunity cost better is to think in terms of cost and benefit.