ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Jason can put his money in a savings account and earn about 12 cents in interest this month, or he can loan it to Matt, who says he’ll return the money plus $20 at the end of the month. He loans it to Matt. What is the opportunity cost?
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savings account
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Jason
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loan $20 to Matt
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The 12 cent interest from the bank.
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Explanation:
Detailed explanation-1: -Jason can put his money in a savings account and earn about 12 cents in interest this month, or he can loan it to Matt, who says he’ll return the money plus $20 at the end of the mouth. He loans it to Matt. What is the opportunity cost? The 12 cent interest from the bank.
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