Which of the following illustrates an opportunity cost?

• A. Choosing to spend time studying for an exam instead of going to a movie with friends
• B. Finding money on the sidewalk
• C. Paying the listed price for a product at a store
• D. Receiving a free sample at a grocery store

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of opportunity cost. Opportunity cost is the value of the next best alternative that you give up when making a choice.
2. Step 2: Analyze each option to identify if it involves a trade-off where one alternative is sacrificed for another.
3. Step 3: For 'Choosing to spend time studying for an exam instead of going to a movie with friends,' recognize that the opportunity cost is the enjoyment and social time lost by not going to the movie.
4. Step 4: For 'Finding money on the sidewalk,' note that this is a gain without a trade-off, so it does not illustrate opportunity cost.
5. Step 5: For 'Paying the listed price for a product at a store' and 'Receiving a free sample at a grocery store,' observe that these do not explicitly involve giving up one alternative for another, so they do not illustrate opportunity cost.