17
QuizMultiple Choice

Globalization and International Trade — Unit test

Question 17 • EA Academy Civics 9

What is the most important thing people must do to understand the opportunity costs for any big economic decision they make?

Answer
A
They must enlist the support of everyone involved in making the decision a reality.
B
They must investigate both the explicit and implicit costs involved in the decision.
C
They must make an accurate budget and make sure there is enough money available.
D
They must look at the time required to make the decision and see it come to pass.

Explanation

Opportunity cost is the value of what you give up when you choose one option over another. To understand it, people need to consider both explicit costs, such as money paid, and implicit costs, such as the value of an alternative they forgo. Therefore, the best answer is “investigate both the explicit and implicit costs involved in the decision.”

AI-written and checked against the verified answer.

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