Which of the following statements are CORRECT?
I. The "highest-valued alternative given up to get something" is the opportunity cost.
II. Wealthy economies don't experience opportunity costs.
III. Scarcity creates opportunity costs.
A) I only
B) I and II
C) I and III
D) I, II, and III

Question

Quizplus · Accepted Answer

I. Opportunity cost is indeed defined as the value of the next best alternative that is forgone in making a decision. III. Scarcity, which refers to the limited nature of society's resources, is the reason why choices must be made about how resources are allocated, thus creating opportunity costs. Wealthy economies also experience opportunity costs because no economy has unlimited resources.

Which of the Following Statements Are CORRECT