Title: QUIZ: Opportunity Cost Module
Course: Kelly O's Course > Section: Opportunity Cost -- Interactive Module

Q: Opportunity cost is __________.
- the value of the next-best alternative
- the dollar value of the item you give up
- the value of all of the alternatives you did not choose
- the time taken to make a decision
A: the value of the next-best alternative
If right: That is correct!
If wrong: That is incorrect. Opportunity cost is the value of the next-best alternative when a decision is made; it is what is given up.

Q: Which of the following best illustrates opportunity cost?
- Paying for a monthly gym membership
- Watching TV instead of studying
- Earning interest on a savings account
- Getting a refund for a purchase
A: Watching TV instead of studying
If right: That is correct!
If wrong: That is incorrect. The best example of opportunity cost is one that reflects having to make a decision between two choices.

Q: If you spend $60 on a game, the opportunity cost is __________.
- the other item you could have purchased
- the time spent playing the game
- the money you spent on the game
- the fun you had with the game
A: the other item you could have purchased
If right: That is correct!
If wrong: That is incorrect. When deciding between two items to spend your money on, the one you do not choose is the opportunity cost.

Q: Which of these is least related to the concept of opportunity cost?
- Giving up a job offer
- Choosing one college over another
- Spending money on fast food
- Comparing prices at two stores
A: Comparing prices at two stores
If right: That is correct!
If wrong: That is incorrect. Price comparison is a factor that can influence the decision you make; it is not the opportunity cost.

Q: True or False: There are no costs to some decisions.
- True
- False
A: False
If right: That is correct!
If wrong: That is incorrect. Every decision we make involves giving up something.

Q: True or False: Opportunity cost is always measured in monetary terms.
- True
- False
A: False
If right: That is correct!
If wrong: That is incorrect. Opportunity cost is the value of the next-best alternative that is given up, and this is not always monetary. It can also be social or emotional.

Q: What is the opportunity cost of attending college instead of working full time after high school?
- Tuition, fees, and textbooks costs
- Future job opportunities
- The income you give up by not working
- There is no opportunity cost
A: The income you give up by not working
If right: That is correct!
If wrong: That is incorrect. In this scenario, there are two clear choices: go to college or go to work. In this case, the decision is to go to college. Therefore, the opportunity cost is the income that could have been earned.