The Opportunity Cost of Choosing an Alternative

question 69

Multiple Choice

The opportunity cost of choosing an alternative

• A) is the value of the highest valued alternative forgone as the result of the choice.
• B) includes only the amount of time spent on whatever is chosen.
• C) includes only the money cost of the option.
• D) is irrelevant for most choices individuals face.

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Definitions:

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people, often measured by increases in income, education, and health.

Capacity

The maximum amount that something can contain or produce, often referred to in terms of production capability or volume storage.

Goods And Services

Products and activities offered for sale, including tangible items (goods) and intangible assistance or expertise (services).

Developing Countries

Nations with a lower level of industrialization, lower standard of living, and lower Human Development Index than developed countries.