Multiple Choice
A basic concept in economics is that all resources are:
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0. Basic Principles of Economics
Scarcity and Choice
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In the context of scarcity and choice, opportunity cost refers to the value of what must be:
A
given up
B
replenished
C
paid for
D
ignored
Verified step by step guidance1
Understand the concept of opportunity cost in microeconomics: it represents the value of the next best alternative that must be forgone when making a choice.
Recognize that scarcity means resources are limited, so choosing one option means giving up another.
Identify that opportunity cost is not about something being replenished, paid for, or ignored, but rather about what is sacrificed.
Conclude that opportunity cost refers to the value of what must be given up when a decision is made.
Therefore, the correct interpretation of opportunity cost in this context is the value of what must be given up.
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