Which of the following statements best reflects the concept of opportunity cost in the context of helping others, as discussed in introductory economics?

• A. Only individuals with high incomes can afford to consider opportunity costs.
• B. Helping others may require giving up some of your own resources, regardless of your income level.
• C. You have to wait until you have a large income before you can help others.
• D. Opportunity cost does not apply to charitable actions.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of opportunity cost. Opportunity cost is the value of the next best alternative foregone when making a decision. It applies to all choices, including those involving helping others.
2. Step 2: Recognize that opportunity cost is not limited by income level. Whether a person has a high or low income, choosing to help others means giving up some other use of their resources (time, money, or effort).
3. Step 3: Analyze the given statements in the context of opportunity cost. The statement that best reflects opportunity cost acknowledges that helping others involves sacrificing some personal resources, regardless of income.
4. Step 4: Eliminate incorrect options: The idea that only high-income individuals can consider opportunity costs is false because opportunity cost applies universally; waiting for a large income before helping ignores the immediate trade-offs; and claiming opportunity cost does not apply to charitable actions misunderstands the concept.
5. Step 5: Conclude that the correct understanding is that helping others requires giving up some of your own resources, which is the essence of opportunity cost in this context.