When We Choose a Particular Option, We Must Give Up

question 341

Multiple Choice

When we choose a particular option, we must give up alternative options. The highest- valued alternative forgone is the of the option chosen.

• A) nonmonetary cost
• B) opportunity cost
• C) absolute advantage
• D) comparative advantage

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Definitions:

River

A large moving stream of water driven by gravity and flowing from higher to lower elevations.

Active Volcano

A volcano that has erupted in the recent past and is considered likely to do so again.

Iron-Nickel Meteorite

A type of meteorite consisting mainly of iron and nickel, typically formed from the core of ancient asteroids.

Continental Crust

The type of Earth’s crust that underlies the continents and the continental shelves; average granitic composition, but includes diverse types of material.