As an insurance claims adjuster, Rosa is responsible for data management, which includes record keeping and client management. However, her supervisor has assigned Rosa some new responsibilities. As a result of these new duties, Rosa is finding that she isn't able to process as many claims as she could in the past. What concept does this demonstrate?
A) comparative advantage
B) fixed cost
C) absolute advantage
D) opportunity cost

Question

Quizplus · Accepted Answer

This situation demonstrates the concept of opportunity cost, which is the cost of giving up one opportunity in order to pursue another opportunity. Rosa's new responsibilities have required her to spend more time on data management and less time on processing claims, resulting in the opportunity cost of fewer claims being processed.

As an Insurance Claims Adjuster, Rosa Is Responsible for Data