Understanding Opportunity Costs

The average cost of several investment options

The guaranteed return from a particular investment

The benefit lost when one alternative is chosen over another (correct)

The total cost incurred by an investor in a project

An individual spends their savings on a vacation rather than investing it. (correct)

A student selects a major that does not offer many job opportunities.

An investor decides to put $1000 into stocks instead of savings, losing interest income. (correct)

A business allocates funds for marketing instead of product development, resulting in lower sales. (correct)

Buying a new car instead of a used one, leading to higher ongoing costs.

Choosing to work overtime instead of spending time with family.

Forgetting to renew a subscription and losing access to services. (correct)

Investing in renewable energy over fossil fuels due to ethical considerations.

<p>The potential revenue from the chosen and foregone alternatives</p> Signup and view all the answers

<p>By highlighting the possible losses from foregone alternatives</p> Signup and view all the answers