Opportunity Cost Statements Quiz

Identifying the direct financial expenses of all possible alternative actions.

Calculating the monetary value of the next best alternative to that action. (correct)

Considering only the financial benefits of the chosen action.

Choosing the most expensive alternative action.

Opportunity costs only measure direct out of pocket expenditures.

To calculate accurately the opportunity cost of an action we need to first identify the least feasible alternative to that action.

The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions. (correct)

Opportunity cost is the direct financial expense incurred in choosing a particular action.

Direct out-of-pocket expenditures of the chosen action.

The financial gain from the chosen action.

The number of feasible alternative actions available. (correct)

The ease of identifying the next best alternative.

<p>Opportunity costs encompass all feasible alternative actions, not just direct out-of-pocket expenditures.</p> Signup and view all the answers