Economics · May / June 2022 · Paper 12 · Question 2

A student has nothing to do on a Friday evening. She withdraws $5 from the $100 she has in a savings account and buys a present to take to a party, to which admission is free. What does this involve?

1. Aan opportunity cost equal to $95
2. Ban opportunity cost equal to other goods she could have bought for $5
3. Cno opportunity cost, as entrance to the party is free
4. Dno opportunity cost, as she had no better way of using the time

As printed in the paper