You have the choice of going to Hawaii for a week, staying at work for the week, or spending the week skiing. If you decide to
go to Hawaii, the opportunity cost is A. the value of working and skiing. B. working, because you would be giving up a week's pay. C. the value of working or skiing, depending on which you would have done rather than go to Hawaii. D. None of the above if you enjoy the time spent in Hawaii.
C. the value of working or skiing, depending on which you would have done rather than go to Hawaii.
Explanation:
Economists implement the term opportunity cost to denote that people have to give up on some things to acquire some other things they desire. As there is a limitation of resources, every time you choose the way to use them, you are at the same time giving up on some other options. In economics, whatever choice you make implies an opportunity cost.
