140697
AssignmentMultiple Choice

International Trade

Question 140697 • IL-Economics

Which phrase best defines the term “opportunity cost”?

Answer
A
what a country produces when it specializes in a good or service
B
what a country gives up when it chooses to produce a good or service
C
what a country gains when it chooses to produce a good or service
D
what a country invests in a particular good or service

Explanation

Opportunity cost is the value of the next-best alternative that is given up when a choice is made. If a country chooses to produce one good or service, it gives up the chance to use its resources to produce something else. Therefore, the best definition is “what a country gives up when it chooses to produce a good or service.”

AI-written and checked against the verified answer.

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