In Economics We Learn That

question 433

Multiple Choice

In economics we learn that

• A) tradeoffs allow us to have more of everything we value.
• B) tradeoffs allow us to avoid the problem of opportunity cost.
• C) opportunity costs are all of the possible alternatives given up when we make a choice.
• D) None of the above answers is correct.

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Definitions:

Mexico

A country located in the southern portion of North America, known for its rich culture, history, and diverse landscapes.

United States

A country located in North America, consisting of 50 states and a federal district, known for its large economy and diverse population.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision.

Production Possibility Frontier

A graph that shows all the highest production potentials for two products, based on a specific set of resources and various factors.