ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The value of things given up when a decision is made.
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The monetary cost of any economic transaction.
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The price to a consumer of a good or service.
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The cost a buyer sees for something they want.
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The trade-offs faced when choosing how to use a scarce resource.
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Detailed explanation-1: -The correct answer is b. Benefits foregone by not choosing an alternative course of action.
Detailed explanation-2: -Answer and Explanation: Of the given statements about opportunity costs, (a) III only is TRUE. I. The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions.
Detailed explanation-3: -Opportunity cost is the value or benefit of an alternative choice compared to the value of what is chosen. The concept of opportunity cost is used in decision-making to help individuals and organizations make better choices, primarily by considering the alternatives.
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.