Multiple choice

Which of the following is not part of the opportunity cost of going on holiday?

  1. The money you spend on a theatre shown

  2. The money you could have made if you had stayed at home and worked

  3. The money you spent on airline tickets

  4. The money you spent on food
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Opportunity cost refers to the value of the next best alternative forgone. The money spent on food during holiday is direct expenditure, not an opportunity cost. The money you COULD have earned by working (B) and money spent on theater tickets (A) represent trade-offs and opportunity costs.

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