ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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all the items
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the next best alternative
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the least important alternative
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everything except the item that was chosen.
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Detailed explanation-1: -The statement is TRUE. The significance of the better opportunity foregone in a specific choice is referred to as opportunity cost. It’s not just the money spent on that option. Limited availability, preference, and opportunity cost are central concepts in economic analysis.
Detailed explanation-2: -Opportunity cost is the value of the best opportunity forgone in a particular choice. It is not simply the amount spent on that choice. The concepts of scarcity, choice, and opportunity cost are at the heart of economics. A good is scarce if the choice of one alternative requires that another be given up.
Detailed explanation-3: -What is the simple definition of opportunity cost? Opportunity cost is the value of what you lose when choosing between two or more options. Every choice has trade-offs, and opportunity cost is the potential benefits you’ll miss out on by choosing one direction over another.
Detailed explanation-4: -“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.