Which of the following is an example of an opportunity cost?

Question 11 options:

Renting an apartment near school

Saving money instead of taking a vacation

Setting aside money for paying income tax

Purchasing automobile insurance

1 answer

The best example of an opportunity cost among the options provided is:

Saving money instead of taking a vacation.

Opportunity cost refers to the value of the next best alternative that is forgone when making a decision. In this case, by choosing to save money, you are giving up the opportunity to enjoy a vacation. The other options involve expenses or obligations rather than alternative choices that involve trade-offs.