The student center on campus has burritos,bagels,or burgers for lunch,and they all cost the same.You love burgers and bagels,but you decide to have a burger today.If they were out of burgers,you would have bought a bagel.Which economic principle does this statement BEST represent?
A)The true cost of something is its opportunity cost.
B)"How much" is a decision at the margin.
C)One person's spending is another person's income.
D)There are gains from trade.

Question

Quizplus · Accepted Answer

This statement represents the economic principle of opportunity cost, which is the idea that the true cost of something is what must be given up in order to obtain it. In this case, the opportunity cost of choosing a burger is giving up the opportunity to have a bagel. If the student center had run out of burgers, the opportunity cost of having a bagel would disappear, and the student would be able to choose the bagel without giving up anything else.

The Student Center on Campus Has Burritos,bagels,or Burgers for Lunch,and