Question

Shari is trying to decide how she should use her cash birthday gifts. Her choices are new clothes, a concert ticket, or donating the money to her favorite charity. Shari decides to donate the money. The value given up by not choosing both the clothes and the concert ticket is called a _____ .
A.) trade-off

B.) opportunity cost

C.) retail price

Answer 1

The answer would be B.) opportunity cost because it is the result of a trade-off, the trade-off being Shari choosing to donate to charity.