8
lesson pretestMultiple Choice

Pretest

Question 8 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Which situation is the best example of opportunity cost?

Answer
A
A country chooses to export all of its products.
B
A country chooses to invest in manufacturing and agriculture.
C
A country chooses to specialize in producing paper products.
D
A country chooses to produce bananas instead of wheat.

Explanation

Opportunity cost is the value of the next-best option given up when a choice is made. Choosing to produce bananas instead of wheat means giving up the wheat that could have been produced with those resources, so this is the best example. The other choices describe production or trade decisions without clearly naming what is sacrificed.

AI-written and checked against the verified answer.

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