Ross has two different projects he would like to work on this weekend: paint the spare bedroom or perform some minor repairs on his old '83 Chevy. Unfortunately, he doesn't have time to do both this weekend. The fact that Ross must give up one thing in order to do something else best illustrates what concept?
A) comparative advantage
B) the hierarchy of needs
C) opportunity cost
D) diminishing returns

Question

Quizplus · Accepted Answer

The concept being illustrated here is opportunity cost, which refers to the value of the next best alternative that must be given up in order to pursue a certain action or decision. In this case, Ross must give up either painting the spare bedroom or repairing his old car, and the value of the option he gives up is his opportunity cost. Comparative advantage, hierarchy of needs, and diminishing returns are not directly relevant to this scenario.

Ross Has Two Different Projects He Would Like to Work