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Suppose that you have received $300 as a birthday gift. You can spend it today or you can put the money in a bank account for a year and earn 5 percent interest. The opportunity cost of spending the money today, in terms of what you could have after one year, is:_____________________.
a. $0.
b. $15.
c. $305.
d. $315.

Respuesta :

jepessoa

Answer:

B) $15

Explanation:

Opportunity costs are the extra costs or benefits lost that result from choosing one activity (or investment) over another alternative.

In this case, you have two alternative actions:

  • spend the $300 today on whatever you want
  • save the money and you will have $315 in one year (= $300 x 1.05)

If you choose to spend the money today, your opportunity cost = $300 (money available today) - $315 (money available in one year) = -$15

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