Business I / Opportunity Cost
Practice question · Match the pairs

Match each decision to its most important opportunity cost.

  • Government builds a stadium
  • Farmer plants wheat
  • Student takes a gap year job
  • Firm keeps cash idle
  • The barley the field could have grown
  • The schools the budget could have funded
  • The interest an investment would have paid
  • A year of study and its future returns
Hints
  1. The cost is the best road not taken, not the money spent.
  2. Every resource has an alternative use, even when accounts show none.
Show the answer
  • Government builds a stadium → The schools the budget could have funded
  • Farmer plants wheat → The barley the field could have grown
  • Student takes a gap year job → A year of study and its future returns
  • Firm keeps cash idle → The interest an investment would have paid
Why

In every case the cost is the best road not taken, resources have alternatives even when the accounting shows none.

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