BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Trade-off
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Scarcity
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Economic Decision-Making
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Opportunity Cost
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Detailed explanation-1: -“Opportunity cost is the value of the next-best alternative when a decision is made; it’s what is given up, ” explains Andrea Caceres-Santamaria, senior economic education specialist at the St.
Detailed explanation-2: -Opportunity cost is what you give up (the benefits of the next best alternative) when you make a choice.
Detailed explanation-3: -Opportunity cost is the value of what you lose when choosing between two or more options. When you decide, you feel that the choice you’ve made will have better results for you regardless of what you lose by making it.
Detailed explanation-4: -Principle #2: The cost of something is what you give up to get it. example: College education. The benefits are the job opportunities and personal satisfaction, but there are costs besides “out of pocket” costs like tuition and books.