Which of the following best describe(s) opportunity costs?
I. An opportunity cost is the next best alternative a person has given up when he or she makes a c to do something else.
II. Opportunity costs are always measured in terms of dollars.
III. Opportunity costs are higher for U.S.- made goods.

Question

Quizplus · Accepted Answer

Only statement I accurately describes opportunity costs as the next best alternative given up when making a choice. Statement II is false, as opportunity costs are not always measured in dollars. Statement III is also false, as opportunity costs do not depend on the origin of the goods being compared.

Which of the Following Best Describe(s) Opportunity Costs