Which of the following statements are correct?
I. The ʺhighest-valued alternative given up to get somethingʺ is the opportunity cost.
II. Wealthy economies donʹt experience opportunity costs.
III. Scarcity creates opportunity costs.

Question

Quizplus · Accepted Answer

Statement I is correct, as opportunity cost is defined as the highest-valued alternative foregone. Statement II is incorrect, as all economies face scarcity and thus experience opportunity costs. Statement III is correct, as opportunity costs arise due to scarce resources and the need to make choices between alternative uses for those resources. So, only statement I and III are correct.

Which of the Following Statements Are Correct