The concept of opportunity cost refers to the potential benefit an individual, investor, or business misses out on when choosing one alternative over another. It's essentially what you give up in order to do something else.

Looking at the options:

1. Interest earned on a savings account: This is not an opportunity cost. It's a benefit or return you receive from saving money.

2. The cost of a needed car repair: This is a direct cost, not an opportunity cost. You're spending money to fix a car, but you're not foregoing another opportunity to do so.

3. Lower future investment earnings as a result of purchases: This is an example of opportunity cost. If you choose to spend money on purchases now, you're giving up the potential future earnings that money could have generated if you had invested it.

4. Salary or wages earned on a part-time job: This is not an opportunity cost. It's a direct benefit you receive from working.

So, the answer is "Lower future investment earnings as a result of purchases".

Question

The concept of opportunity cost refers to the potential benefit an individual, investor, or business misses out on when choosing one alternative over another. It's essentially what you give up in order to do something else.

Looking at the options:

1. Interest earned on a savings account: This is not an opportunity cost. It's a benefit or return you receive from saving money.

2. The cost of a needed car repair: This is a direct cost, not an opportunity cost. You're spending money to fix a car, but you're not foregoing another opportunity to do so.

3. Lower future investment earnings as a result of purchases: This is an example of opportunity cost. If you choose to spend money on purchases now, you're giving up the potential future earnings that money could have generated if you had invested it.

4. Salary or wages earned on a part-time job: This is not an opportunity cost. It's a direct benefit you receive from working.

So, the answer is "Lower future investment earnings as a result of purchases".

Knowee AI · Accepted Answer

The concept of opportunity cost refers to the potential benefit an individual, investor, or business misses out on when choosing one alternative over another. It's essentially what you give up in order to do something else.

Looking at the options:

1. Interest earned on a savings account: This is not an opportunity cost. It's a benefit or return you receive from saving money.

2. The cost of a needed car repair: This is a direct cost, not an opportunity cost. You're spending money to fix a car, but you're not foregoing another opportunity to do so.

3. Lower future investment earnings as a result of purchases: This is an example of opportunity cost. If you choose to spend money on purchases now, you're giving up the potential future earnings that money could have generated if you had invested it.

4. Salary or wages earned on a part-time job: This is not an opportunity cost. It's a direct benefit you receive from working.

So, the answer is "Lower future investment earnings as a result of purchases".

Multiple Choice QuestionWhich of the following is an example of an opportunity cost?Multiple choice question.interest earned on a savings accountthe cost of a needed car repairlower future investment earnings as a result of purchasessalary or wages earned on a part-time job

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