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

Statement I is correct, as opportunity cost is defined as the alternative that must be given up in order to pursue a certain action. 
Statement II is incorrect, as even wealthy economies face scarcity and have to make trade-offs which involve opportunity costs. 
Statement III is correct, as scarcity means that resources are limited, thus forcing individuals and societies to choose between different alternatives, each with their own opportunity cost.

Which of the Following Statements Are Correct