7
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Topic Test

Question 7 • LA-Financial Math A

A person has a choice between an apple or an orange. The person chooses the apple. What is the opportunity cost of choosing the apple?

Answer
A
There is no opportunity cost.
B
The value of what was not chosen.
C
The utility of the apple.
D
The scarcity of oranges.

Explanation

Opportunity cost is the value of the next-best alternative that is given up when making a choice. By choosing the apple, the person gives up the orange, so the opportunity cost is the value of what was not chosen. The utility of the apple is a benefit of the choice, not its opportunity cost.

AI-written and checked against the verified answer.

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