Multiple Choice
Most resources are nonrenewable, and wants and needs are unlimited. This is an example of:
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Karen chooses to go to university full-time rather than to work. Karen:
A
is facing an opportunity cost equal to the income she could have earned by working
B
does not experience any opportunity cost because education is always beneficial
C
will have no trade-offs as a result of her decision
D
is making a choice without considering scarcity
Verified step by step guidance1
Understand the concept of opportunity cost: it is the value of the next best alternative foregone when making a choice.
Identify Karen's choice: she chooses to attend university full-time instead of working.
Determine what Karen gives up by attending university: the income she could have earned by working during that time.
Recognize that even though education has benefits, the opportunity cost includes the foregone earnings, which is a real trade-off.
Conclude that Karen is facing an opportunity cost equal to the income she sacrifices by not working while studying.
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