ECONOMICS
OPPORTUNITY COST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
The economic perspective
|
|
|
Marginal analysis
|
|
|
Opportunity cost
|
|
|
Allocative efficiency
|
Detailed explanation-1: -The answer is d). Opportunity cost, in simple terms, is what you have to give up in order to obtain something.
Detailed explanation-2: -The opportunity cost of an item is what you give up to get that item. In this case, the opportunity cost of going to a movie includes both the total cash expenditure needed to go to the movie plus the value of the time you gave up in order to watch the movie.
Detailed explanation-3: -The correct answer is b. Benefits foregone by not choosing an alternative course of action.
Detailed explanation-4: -Economics, however, is mainly concerned with scarce resources and goods. It is the presence of scarcity that motivates the study of how society allocates resources and goods. One means by which society allocates scarce resources and goods is the market system.