Question

Suppose a student has 2 hours in which he can only watch a movie or study. What is the opportunity cost of studying?

Options

• Opportunity cost of studying is not watching a movie.

• Opportunity cost of studying is watching a movie.

• Opportunity cost of studying is partying with friends.

• There is no opportunity cost of studying.

Answer 1

Opportunity cost of studying is watching a movie.

Explanation:

The opportunity cost of an activity is the value of the time you would have spent doing something else. As a result, you had abandoned the idea of watching a movie while studying.