ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If a person who wants to buy a CD and has just enough money to buy one, and chooses CD A instead of CD B, then CD B is the
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Opportunity Cost
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Trade
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Expert-Verified Answer. If someone who wants to acquire a compact disc (CD) has just sufficient money to buy one, and chooses CD a instead of CD b, then CD B is the opportunity cost.
Detailed explanation-2: -CDs tend to have the highest interest rates among savings accounts. The trade-off is that you lose access to funds for periods of time.
Detailed explanation-3: -For example, choosing public transportation to travel to a particular destination by foregoing the option of traveling in one’s own car is a good example of opportunity cost, because you end up saving money which needs to be spent on fuel.
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