10
QuizMultiple Choice

Opportunity Cost — Quiz

Question 10 • Personal Finance

What are the implicit costs associated with economic decisions?

Answer
A
the proposed budget for the decision rather than the actual amount spent
B
the amount of money that was spent due to the decision
C
the cost of hiring all personnel to complete the proposed project
D
the choices and options that were lost due to the decision

Explanation

Implicit costs are the opportunity costs of a decision: the value of the alternatives given up when a choice is made. They do not necessarily involve a direct payment. Therefore, the correct choice is “the choices and options that were lost due to the decision.”

AI-written and checked against the verified answer.