The basic idea of opportunity cost is that:
A) buyers miss opportunities to find better bargains.
B) using resources in an activity imposes costs on other people.
C) the decision to use resources in one activity means that they cannot be used elsewhere.
D) economic agents are always looking for better opportunities.

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of forgoing an alternative option or choice. It means that when resources are used in one activity, they cannot be used in other activities, and thus there is an opportunity cost associated with the choice. Option A relates more to comparative advantage and option D relates to rational economic behavior, but they do not fully capture the concept of opportunity cost. Option B relates to externalities rather than opportunity costs.

The Basic Idea of Opportunity Cost Is That