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

Opportunity cost is the value of the best alternative foregone when making a choice because of scarce resources. It is key to understanding economic trade-offs. The correct answer is e. opportunity cost.

The concept of opportunity cost is fundamental in understanding economics. When we make choices due to scarcity of resources, we incur an opportunity cost, which is the value of the best alternative that we give up.
For instance, if a business decides to produce a bottle of soda instead of a bottle of water, the opportunity cost is the profit that could have been made from selling the water. This concept is crucial because it illustrates the trade-offs that are necessary when choosing one good over another due to limited resources.

Answered by PeterGene | 2024-06-24

The concept referring to the good that must be given up to produce another good is called opportunity cost, which represents the value of the next best alternative foregone as a result of choosing a world of limited resources. The option (E) is correct.
Opportunity cost is an economic concept that refers to the value of the next best alternative that you forego when making a choice. To illustrate, if you produce a bottle of soda instead of a bottle of water, then the opportunity cost of the soda is the value of the water you didn't produce.
This principle is pivotal in economics because it represents the true cost of making a choice, given the scarcity of resources.

Answered by BakkiyaLakshmi | 2024-06-25

The chosen option is e. opportunity cost. Opportunity cost is the value of the best alternative that must be given up to produce another good, emphasizing the trade-offs involved in economic decisions. Understanding opportunity cost is essential for making informed choices when resources are limited.
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Answered by PeterGene | 2024-10-09