Opportunity cost is best described as b) benefits foregone by not choosing an alternative course of action. This economic concept reflects the potential gains you miss out on when you make a choice. Whenever you decide on one option over another, the opportunity cost is what you give up in order to pursue that chosen option.
For example, if you decide to spend time studying for an exam instead of going out with friends, the opportunity cost is the enjoyment and social interaction you forego during that time. Understanding opportunity cost is crucial for making informed decisions, as it helps individuals and businesses evaluate the potential benefits of various alternatives before committing to a choice.