Due to resource scarcity,
A) some economic activities have an opportunity cost
B) all economic activities have an opportunity cost
C) no economic activities have an opportunity cost
D) economic activities have opportunity costs equal to their market prices
E) economic activities have opportunity costs generally lower than their market prices

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative forgone in order to pursue a certain action. Since resources are scarce, all economic activities require giving up the opportunity to use those resources for something else, hence all economic activities have an opportunity cost.

Due to Resource Scarcity