Opportunity Cost Is

question 63

Multiple Choice

Opportunity cost is

• A) that which we forgo, or give up, when we make a choice or a decision.
• B) a cost that cannot be avoided, regardless of what is done in the future.
• C) the additional cost of producing an additional unit of output.
• D) the additional cost of buying an additional unit of a product.

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Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors, using fewer resources.

Lumber

Lumber that has been manufactured into planks and beams, marking a step in the journey of producing wood products.

Comparative Advantage

The ability of an individual, company, or country to produce a particular good or service at a lower opportunity cost than others.

Copper Ore

A natural mineral formation containing copper in sufficient concentration to make its economic extraction feasible.