1
QuizMultiple Choice

Opportunity Cost

Question 1 • LA-Financial Math A

Economists state that every decision involves trade-offs. Economists measure and define these trade-offs as:

Answer
A
productions possibilities curve.
B
paradox of value.
C
circular flow of economic activity.
D
opportunity costs.

Explanation

Economists measure a trade-off by identifying the value of the next-best alternative that must be given up. That is called an opportunity cost, so “opportunity costs” is the correct choice. A production possibilities curve shows possible production combinations, while the other choices describe different economic ideas.

AI-written and checked against the verified answer.

Next