Multiple Choice
Which of the following is considered one of the four scarce economic resources?
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0. Basic Principles of Economics
Scarcity and Choice
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Opportunity cost means that something needs to be:
A
given up in order to obtain something else
B
produced using the least amount of resources
C
sold at the highest possible price
D
chosen without considering alternatives
Verified step by step guidance1
Understand the concept of opportunity cost: it refers to the value of the next best alternative that must be forgone when making a choice.
Recognize that opportunity cost involves a trade-off, meaning that to obtain one thing, you must give up something else.
Eliminate options that do not involve giving something up, such as 'produced using the least amount of resources' or 'sold at the highest possible price,' since these describe efficiency or pricing, not trade-offs.
Focus on the option that highlights the necessity of giving up one thing to gain another, which aligns with the definition of opportunity cost.
Conclude that opportunity cost means something needs to be 'given up in order to obtain something else.'
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