When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of
A) an incentive.
B) a social interest/private interest conflict.
C) opportunity cost.
D) marginal benefit.

Question

Quizplus · Accepted Answer

The concept illustrated is opportunity cost, which refers to the value of the next best alternative that is given up when a choice is made. In this case, when people are hired to serve in the army, the opportunity cost is the other work they could have done instead.

When the Government Hires People to Serve in the Army