When We Choose a Particular Option, We Must Give Up

question 434

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

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Definitions:

Ecologically Sustainable

Practices and processes that preserve environmental resources for future generations while meeting current needs.

Renewable Energy

Energy from resources that are naturally replenishing, such as solar, wind, water, and geothermal heat.

Short-termism

The concentration on short-term projects or objectives for immediate profit at the expense of long-term security.

Resource Constraints

Limits on the availability of factors of production that reduce a company’s ability to produce goods and services.