Opportunity Cost C3 Flashcards
1
Q
What is the definition of Opportunity Cost?
A
The next best alternative forgone.
2
Q
What is the influence of Opportunity Cost on Consumers?
A
Make better choices, consider price, more informed on products.
3
Q
What is the influence of Opportunity Cost on Producers?
A
Choosing a product to produce, choose one that leads to higher profit.
4
Q
What is the influence of Opportunity Cost on Workers?
A
Consider preferences, specific skills and salary, know what job to choose.
5
Q
What is the influence of Opportunity Cost on Government?
A
Consider expenditures and tax revenues, impose taxes to discourage certain buying.
