ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Opportunity Cost
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Trade Offs
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Scarcity
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Rational Decision Making
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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. Louis Fed, in a recent Page One Economics: Money and Missed Opportunities.
Detailed explanation-2: -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-3: -The most desirable alternative given up as a result of a decision is known as opportunity cost.
Detailed explanation-4: -The alternative name of opportunity cost is Economic cost.
Detailed explanation-5: -Opportunity cost is what you give up (the benefits of the next best alternative) when you make a choice.