Economics Semester Exam

Question

3 of 313 of 31 Items
Question
A consumer must decide between purchasing a new television or a new computer. If the consumer chooses the television, then what is the opportunity cost of this decision?(1 point)
Responses

The opportunity cost is the consumer's benefit from purchasing the computer.
The opportunity cost is the consumer's benefit from purchasing the computer.

The opportunity cost is the difference in price between the television and computer.
The opportunity cost is the difference in price between the television and computer.

The opportunity cost is the difference between the benefit from purchasing the television and the benefit from purchasing the computer.
The opportunity cost is the difference between the benefit from purchasing the television and the benefit from purchasing the computer.

The opportunity cost is the consumer's benefit from purchasing the television.

Answer 1

The correct response is:

The opportunity cost is the consumer's benefit from purchasing the computer.

Opportunity cost refers to the value of the next best alternative that is forgone when making a choice. In this case, if the consumer chooses to purchase the television, the opportunity cost would be the benefit they would have received from purchasing the computer instead.