The Opportunity Cost of Something Is

question 17

Multiple Choice

The opportunity cost of something is:

• A)greater during periods of rising prices.
• B)equal to the money cost.
• C)less during periods of falling prices.
• D)what is given up to acquire it.

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Definitions:

External Benefit

A benefit gained by individuals or firms not directly involved in a transaction, leading to positive side effects or spillovers.

Private Cost

The direct cost that producers or consumers incur through their actions, not including externalities.

Private Value

Refers to the value that an individual or a private entity assigns to a good or service, based on personal assessment rather than market perception.

Economists

Experts in economics who study, develop, and apply theories and concepts about how economies work and distribute resources.