Opportunity costs exist because
A) there is a price attached to virtually every good or service
B) technology is not fixed in the economy
C) people have different tastes and preferences
D) limited resources cannot satisfy all of the wants in society
E) the production possibilities frontier is bowed in with respect to the origin

Question

Quizplus · Accepted Answer

Opportunity costs exist because there are limited resources that cannot satisfy all the wants in society, and hence, choices have to be made regarding the allocation of resources. Every choice involves an opportunity cost, which is the value of the next best alternative forgone.

Opportunity Costs Exist Because