Question

what best describes opportunity cost in economic terms?
budget allocations in personal finance
measures cost by what we give up in exchange; measures the value of the forgone alternative
financial impact of investment choices
direct cost associated with purchasing decisions

Explanation:

Opportunity cost is the value of the next - best alternative forgone. It measures what is given up in exchange.

Answer:

measures cost by what we give up in exchange; measures the value of the forgone alternative