Question

Sara's income is $12 a week. The price of popcorn is $3 a bag, and the price of a smoothie is $3. The opportunity cost of a smoothie is ________. A) $3 B) 4 bags of popcorn C) 1.00 smoothie D) 1.0 bag of popcorn E) $1

Answer 1

Sara's income is $12 a week. The price of popcorn is $3 a bag, and the price of a smoothie is $3. The opportunity cost of a smoothie is D) 1.0 bag of popcorn

The opportunity cost of a smoothie for Sara, who earns $12 a week and where both popcorn and a smoothie cost $3 each, is 1.0 bag of popcorn since that is what she gives up to buy a smoothie.

Step-by-step explanation:

The question asks about the opportunity cost of a smoothie for Sara, who has an income of $12 a week and where both a bag of popcorn and a smoothie cost $3 each. The opportunity cost of an item is what you must give up in order to purchase that item instead of another.

In this case, if Sara buys one smoothie, she will have to forego buying one bag of popcorn, hence the opportunity cost of a smoothie is 1.0 bag of popcorn.

Therefore, the correct answer is D) 1.0 bag of popcorn.