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 an important idea in economics that helps us understand the 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 at a part-time job instead of going to a concert, the opportunity cost is the enjoyment and fun you miss out on at the concert. This concept helps us think about the value of our choices and encourages us to consider what we are sacrificing when we make decisions. By understanding opportunity cost, 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 opportunity cost with profit.
Key Concepts
opportunity cost
Topic
Opportunity Cost Analysis
Difficulty
easy level question
Cognitive Level
understand
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