Opportunity Cost

Question 1

Who makes trade-offs?

Answer 1

• People
• Business
• Society

Question 2

Opportunity Cost

Answer 2

Is the most desirable alternative you gave up in a trade-off

Question 3

What is the main idea of opportunity cost?

Answer 3

Because resources are scarce we must make choices or trade-offs. The 2nd most desirable thing lost by making this decision is the opportunity cost.

Question 4

Thinking at the Margin

Answer 4

When you are unsure of the opportunity cost and must decide how much more or less of a unit to use

Question 5

Trade-Off

Answer 5

All the alternatives that we give up whenever we make make a choice