chapter 3- opportunity cost Flashcards

1
Q

definition of opportunity cost

A

opportunity cost is the cost of the next best opportunity forgone when making a decision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

why is there an opportunity cost in choices

A

every choice made has an alternative.
economic agents have to make competing choices due to finite resources. thus there is an opportunity cost when allocating scarce resources,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

3

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly