When we choose a particular option, we must give up alternative options. The highest-valued alternative forgone is the ________ of the option chosen.
A) opportunity cost
B) comparative advantage
C) nonmonetary cost
D) absolute advantage

Question

Quizplus · Accepted Answer

The highest-valued alternative forgone when choosing an option is known as the opportunity cost. This concept is fundamental in economics, reflecting the cost associated with not selecting the next best alternative.

When We Choose a Particular Option, We Must Give Up