Question

A person decides to spend $20 on a ticket to a football game instead of buying a warm jacket for $20. What is the opportunity cost of this decision?

Question 14 options:

$20


the benefit of owning a warm jacket


the enjoyment of the football game


the opportunity cost to learn about football

Answer 1

The opportunity cost of a decision is the value of the next best alternative that is foregone when making that decision. In this case, the person decides to spend $20 on a ticket to a football game instead of buying a warm jacket for $20.

The opportunity cost here would be the benefit of owning a warm jacket, since that is the alternative that was not chosen. Therefore, the correct answer is:

**the benefit of owning a warm jacket**