Why Would It Be a Mistake to Treat Opportunity Costs

question 121

Multiple Choice

Why would it be a mistake to treat opportunity costs and explicit monetary costs as identical?

• A)Because sometimes the market does not function well.
• B)Because opportunity costs are different for different goods.
• C)Because there are trade-offs involved in any decision.
• D)Because of existence of efficient markets.

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Definitions:

Milkweeds

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Monarch Caterpillars

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Distance Effect

A phenomenon in psychology where the distance between stimuli affects response time; in cognitive tasks, greater distances usually lead to faster responses.

Geographic Location

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