Which of the following is an example of an opportunity cost?

Opportunity cost refers to the value of the next best alternative that is forgone when making a choice. In this context, the example of not getting a high yield from low-risk investments highlights this concept effectively.

When you choose low-risk investments, the immediate benefit is safety and the preservation of your capital. However, the trade-off is that you may miss out on potentially higher returns that could be earned from higher-risk investments. The difference in potential earnings between the low-risk option and what could have been earned through higher-yield options represents the opportunity cost.

Choosing a luxury car over a basic model or purchasing a new phone are decisions where immediate personal satisfaction or status is taken into account but do not explicitly highlight the monetary benefit lost from the other options. Similarly, investing in stocks with high volatility involves a different kind of decision-making process focused on risk and reward rather than the trade-off of yields. Thus, not obtaining a high yield from low-risk investments is a clear example of opportunity cost, as it illustrates what is sacrificed in terms of potential earning capacity.