Question

One method for studying opportunity cost is to think in terms of
risk and benefit.
pros and cons.
cause and effect.
trial and error.

Answer 1

The correct answer is risk and benefit. One method for studying opportunity cost is to think in terms of "risk and benefit." When talking about opportunity cost, you need to balance your choices between two items. You need to see to it that the risk and the benefits of getting that opportunity.

Answer 2

Answer: Risk and Benefit

Explanation:

Opportunity cost is defined as the cost of the next best alternative that is foregone. In other words, when an individual makes an economic decision, he must consider the risk(cost) and benefits of doing it. Thus, opportunity cost measures the risk(cost) of taking up an action against its benefits.

So, the correct option out of the given choices is risk and benefit.