ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A the amount of time spent on the activity
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B the value of the benefit received from performing the activity
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C the value of the forgone benefit of the next best alternative
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D zero if the activity offered no benefits
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E the sum of benefits from all the sacrificed alternatives
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Detailed explanation-1: -Opportunity cost is defined by the following: The opportunity cost is the value of the best forgone alternative. This definition emphasizes that the cost of an action includes the monetary cost as well as the value forgone by taking the action.
Detailed explanation-2: -“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-3: -Opportunity cost is the value of the next best alternative forgone as a result of making a decision. Opportunity cost is a function of scarcity. Because of scarcity, people are faced with trade-offs in how they use their limited resources.
Detailed explanation-4: -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-5: -Opportunity cost is the value of the best alternative forgone in making any choice.