Economics 2281 · O Level · Opportunity cost

Opportunity cost — practice question

On Friday evening, a student has no plans. She takes out $5 from the $100 held in a savings account and uses it to purchase a present to bring to a party, where admission costs nothing. What is this an example of?

  • Aan opportunity cost equal to $95$
  • Ban opportunity cost equal to other goods she could have bought for $5$
  • Cno opportunity cost, as entrance to the party is free
  • Dno opportunity cost, as she had no better way of using the time

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI