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 27 options:
the enjoyment of the football game
the benefit of owning a warm jacket
$20
the opportunity cost to learn about football
Question 27 options:
the enjoyment of the football game
the benefit of owning a warm jacket
$20
the opportunity cost to learn about football
Answers
GPT-4o mini
The opportunity cost of a decision refers to the value of the next best alternative that is foregone when a choice is made. In this scenario, the person chooses to spend $20 on a ticket to a football game instead of buying a warm jacket for the same amount.
The next best alternative that is given up in this case is the benefit of owning a warm jacket. Although the enjoyment of the football game is also a benefit, it does not represent the opportunity cost of what they chose to forego, which is the jacket.
Therefore, the correct answer is:
**the benefit of owning a warm jacket**.
The next best alternative that is given up in this case is the benefit of owning a warm jacket. Although the enjoyment of the football game is also a benefit, it does not represent the opportunity cost of what they chose to forego, which is the jacket.
Therefore, the correct answer is:
**the benefit of owning a warm jacket**.