Question

Opportunity costs refer to_____________.

A. current spending habits.
B. changing economic conditions that affect a person's cost of living.
C. storage facilities to make financial documents easily available.
D. trade-offs associated with financial decisions.

Answer 1

Answer:

D. trade-offs associated with financial decisions.

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Let's assume Martin can produce either 5 jeans or 10 shirts in one hour. If Martin decides to produce jeans instead, his opportunity cost are the shirts he trades off when he decided to produce jeans.

I hope my answer helps you