Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The value of the next best alternative that is forgone when making a decision
B
The total cost of all resources used in production
C
The maximum output achievable with available resources
D
The cost of producing one more unit of a good
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 when resources are limited, which is called scarcity. When we decide to use our time or money for one thing, we give up the chance to use it for something else. For example, if you have $10 and choose to buy a book instead of going to the movies, the opportunity cost is the enjoyment you miss from the movie. This concept reminds us that every choice has a trade-off, and we must consider what we are sacrificing when we make decisions. Understanding opportunity cost helps us make better choices that align with our goals and needs.
Detailed Explanation
Opportunity cost is what you give up when you choose one option over another. Other options are incorrect because This option confuses total costs with opportunity cost; This option talks about maximum output, not about choices.
Key Concepts
opportunity cost
Topic
Understanding Economic Scarcity
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.