Asked by
Parker Foley
on Nov 11, 2024
Verified
Opportunity cost exists because:
A) technology is fixed at any point in time.
B) the law of comparative advantage is working.
C) resources are scarce but wants are unlimited.
D) the value of lost opportunities varies from person to person.
E) efficiency is measured by the monetary cost of an activity.
Opportunity Cost
The loss of potential gain from other alternatives when one alternative is chosen.
Resources
Assets or inputs available for use in the production of goods or services, including natural, human, and capital resources.
Scarce
Describes a condition where resources, goods, or capabilities are limited in availability relative to the demand for them.
- Gain an understanding of the idea of opportunity cost and the approach to its quantification.
- Discern the components influencing the concept of opportunity cost and its pertinence to choices made.
- Understand the importance of specialization and exchange in improving efficiency.
Verified Answer
GI
Learning Objectives
- Gain an understanding of the idea of opportunity cost and the approach to its quantification.
- Discern the components influencing the concept of opportunity cost and its pertinence to choices made.
- Understand the importance of specialization and exchange in improving efficiency.