Opportunity cost is best defined as:
A)the monetary price of any productive resource.
B)the amount of labour which must be used to produce one unit of any product.
C)the ratio of the prices of imported goods to the prices of exported goods.
D)the amount of one product which must be given up to produce one more unit of another product.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of what must be given up in order to pursue the best course of action. Option D is the most accurate definition as it states that opportunity cost is the amount of one product that must be forgone to produce another unit of another product. A is incorrect as it only refers to the price of a productive resource, while B and C are not accurate in defining opportunity cost.

Opportunity Cost Is Best Defined As