Question

Which of the following is not a part of the opportunity cost of going on holiday?

• A. The money you spent on a theatre show.
• B. The money you could have made if you had stayed at home and worked.
• C. The money you spent on airline tickets.
• D. The money you spent on food.

Answer 1

Answer: (D)

The money you spent on food.

The money spent on food is not a part of the opportunity cost of going on holiday.Opportunity cost of production of a commodity refers to the cost which has to be sacrificed in terms of the next best alternative which could be produced out of that cost. Therefore, food is part of our everyday expense which will not be considered as the sacrifice of any other commodity.