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

Question

Question 7 options:

Renting an apartment near school

Saving money instead of taking a vacation

Setting aside money for paying income tax

Purchasing automobile insurance
Random Section Chp 10
Question 8 (2 points)
Underwriters for an insurance company do not
Question 8 options:

market insurance policies.

calculate the risks of specific policies.

decide what insurance policies to offer.

decide what premiums to charge.

Answer 1

Question 7

The example of an opportunity cost is: Saving money instead of taking a vacation.

Opportunity cost refers to the value of the next best alternative that you forego when making a decision. In this case, by saving money, you’re giving up the opportunity to go on vacation.

Question 8

Underwriters for an insurance company do not: decide what insurance policies to offer.

Underwriters typically assess risk and determine the terms and pricing of insurance policies, but the decision on what types of policies to offer is generally made by management or other departments within the insurance company.