The opportunity cost of spending four hours studying a review book the night before a final exam would be (LO4) a) the cost of the review book b) missing four hours of TV c) a higher grade on the exam d) the knowledge gained from studying

Short Answer

Expert verified
The opportunity cost of spending four hours studying a review book the night before a final exam would be b) missing four hours of TV, as it represents the leisure time that the student has to give up in order to study.

Step by step solution

01

Identify options

First, let's go through each option provided and analyze its significance in the context of opportunity cost: a) the cost of the review book: This is not an opportunity cost as it is already purchased, and there is no foregone alternative. b) missing four hours of TV: This option sacrifices entertainment for studying. So, this could be considered as an opportunity cost as the student will lose out on this leisure time. c) a higher grade on the exam: This option seems like a positive outcome of choosing to study, not a potential loss (opportunity cost) due to the decision to study. d) the knowledge gained from studying: This is also a positive outcome. Studying helps in gaining knowledge. So it cannot be an opportunity cost. Now, let's determine which option represents the opportunity cost.
02

Choose the correct option

As we analyzed the options, we conclude that the opportunity cost of spending four hours studying a review book the night before a final exam would be: b) missing four hours of TV Because this option represents the entertainment activity that the student has to give up in order to study, representing the lost opportunity due to the choice of studying.

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