An Opportunity Cost Is the Maximum Benefit That Could Be

question 55

True/False

An opportunity cost is the maximum benefit that could be obtained from a resource if it were to be used for some other purpose.

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Definitions:

Substitution Effect

The economic principle that as prices rise (or incomes decrease), consumers will replace more expensive items with cheaper substitutes, holding utility constant.

Income

The amount of money received by an individual or household over a certain period, usually from employment or investments.

Price

The monetary figure anticipated, requisite, or paid as payment for a product.

Apples

A popular fruit known for its sweet taste, crisp texture, and variety of types, often used as a symbol in discussions comparing different goods or models in economics.