Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The money spent on a purchase
B
The next best alternative foregone when a choice is made
C
The total cost of all available options
D
The benefits received from a chosen option
Understanding the Answer
Let's break down why this is correct
Answer
Opportunity cost is the value of what you give up when you make a choice. When you decide to do one thing, like going to a movie, you might miss out on another option, such as staying home to study or spending time with friends. For example, if you spend $10 on a movie ticket, the opportunity cost is not just the money spent but also the other fun activities you could have enjoyed with that money. Understanding opportunity cost helps you make better decisions by weighing the benefits of different choices. This way, you can think about what is truly most important to you in your daily life.
Detailed Explanation
Opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think opportunity cost is just the money spent; This option suggests looking at all costs together.
Key Concepts
opportunity cost
Topic
Microeconomics of Daily Decisions
Difficulty
easy level question
Cognitive Level
understand
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