GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the total value of your options
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the value of something gained when you make a choice
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the value of something given up when you make a choice of one thing over another
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the value of your hours at work
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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: -What Is Opportunity Cost? Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another. Because opportunity costs are unseen by definition, they can be easily overlooked.
Detailed explanation-3: -Opportunity cost refers to what is actually given up when making a purchase or taking an action. For example, if an individual decides to pay school fees with the money then the opportunity cost of this decision is the money that could be earned in case such individuals started a business.