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Set 4: Command of Evidence

Explanation

Answer: C

PASSAGE

Economists define 'opportunity cost' as the value of the next best alternative that is foregone when a choice is made. For example, if you spend an hour studying, the opportunity cost might be the hour of leisure you gave up.

What does the example illustrate about opportunity cost?

A. Studying has no value.
B. Every choice involves giving up something else.
C. Leisure is more important than education.✓ Correct
D. Opportunity cost only applies to money.

Detailed Explanation

The core concept is 'the value of the next best alternative that is foregone. ' Choice requires sacrifice, illustrated by the study vs. leisure example.

Key Evidence:

• "foregone when a choice is made"

Why others are wrong: A (The example doesn't evaluate which has more value.), C (No judgment is made; it's just an example.), D (The example involves time, not money.).

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