O-LevelEconomicsThe basic economic problem2281/11 · May/June 2022 · Q121 Mark
A student has nothing to do on a Friday evening. She withdraws $5 from the $100 she has in a savings account and buys a present to take to a party, to which admission is free. What does this involve?
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
✓ Correct answer
B: an opportunity cost equal to other goods she could have bought for $5
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