The Amount of a Good That Must Be Given Up

question 176

Multiple Choice

The amount of a good that must be given up to produce another good is the concept of:

• A) scarcity.
• B) specialization.
• C) trade.
• D) efficiency.
• E) opportunity cost.

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Definitions:

At the Margin

Decision making based on the additional benefit or cost of one more unit of change, often used in economic analysis.

Opportunity Cost

The burden of passing over the next top choice in the hierarchy of options when deciding.

Average Cost

Calculated by dividing the total cost of production by the number of goods produced, representing the cost per unit.

Minimum Price

The lowest legally allowed price at which a good or service can be sold, often set to protect producers or promote fair trade.