If you decide to go to Florida with your friends during spring break,you cannot go to Paris with your sister in the summer.Which economic principle does this statement BEST represent?
A) The true cost of something is its opportunity cost.
B) "How much" is a decision at the margin.
C) People usually respond to incentives,exploiting opportunities to make themselves better off.
D) There are gains from trade.

Question

Quizplus · Accepted Answer

This statement represents the economic principle of opportunity cost, which is the true cost of something in terms of what must be given up to obtain it. In this case, the opportunity cost of going to Florida with friends during spring break is giving up the opportunity to go to Paris with your sister in the summer.

If You Decide to Go to Florida with Your Friends