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Home Economics QUESTION #6285
Question 1
What is the 'Opportunity Cost' of a family's decision to buy a car instead of renovating the house?
  • The value of the house renovation that was given up✔️
  • The interest paid on the car loan
  • The maintenance cost of the new car
  • The price of the car
Correct Answer Explanation
Opportunity cost is the value of the next best alternative foregone when a choice is made.