Question

understanding opportunity cost
jasmine has played basketball since she was six years old. each winter, she starts practicing for her local team. this year, she has decided to take a job at a supermarket. jasmine is not able to do both activities, because her shift at the supermarket would begin before the teams practices would end.
based on what you have read, if jasmine works at the supermarket, what is her opportunity cost?

• working at a new job
• earning extra spending money
• gaining job experience
• missing out on playing basketball

Explanation:

Opportunity cost refers to the value of the next-best alternative that is forgone when making a choice. Jasmine cannot both work at the supermarket and play basketball, so choosing the job means she gives up the basketball activity. The other options are benefits of the job, not the cost of choosing it.

Answer:

missing out on playing basketball