Question

Which of the following are potential opportunity costs of choosing to buy a house instead of renting a house?

Select 2 correct answers


A. The opportunity to make changes to your living space.


B. The opportunity to save time by not doing regular maintenance on your property.


C. The opportunity to make money by selling your property in the future.


D. The opportunity to save money by not making a down payment.

Answer 1

I think it’s C and D

Answer 2

Answer:

C. The opportunity to make money by selling your property in the future.

D. The opportunity to save money by not making a down payment.

Step-by-step explanation:

Option A is not an opportunity cost of choosing to buy a house instead of renting as it is possible to make changes to a rented living space as well, but the opportunity cost would be the money spent on renovations or upgrades instead of investing it in other ways. Option B is not an opportunity cost either, as renters may also need to spend time and effort on regular maintenance of the property they are renting.