What is the term used to describe the value of the next best alternative forgone when making a decision, particularly in the context of economic scarcity?

The term used to describe the value of the next best alternative forgone when making a decision is called "opportunity cost. " This concept is important in economics because resources are limited, and every choice we make means we cannot choose something else. For example, if you have $10 and decide to buy a book instead of going to the movies, the opportunity cost is the enjoyment you would have gotten from watching the movie. Understanding opportunity cost helps people make better decisions by considering what they are giving up when they choose one option over another. This way, we can evaluate our choices more wisely in a world of scarcity.