Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The cost of an alternative that must be forgone to pursue a certain action
B
The total expenses incurred in producing a good
C
The financial gain received from selling a product
D
The cost incurred from inflation
Understanding the Answer
Let's break down why this is correct
Answer
Opportunity cost is a key idea in economics that helps us understand the value of choices we make. It refers to what we give up when we choose one option over another. For example, if you decide to spend your Saturday working instead of going to a concert, the opportunity cost is the enjoyment and experience you miss out on at the concert. This concept is important because it reminds us to consider not just the money involved but also the benefits we forgo when making decisions. By thinking about opportunity costs, we can make better choices that align with our goals and values.
Detailed Explanation
Opportunity cost is about what you give up when you make a choice. Other options are incorrect because This answer confuses opportunity cost with production costs; This answer mixes up profit with opportunity cost.
Key Concepts
opportunity cost
Topic
Opportunity Cost Analysis
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.