Multiple Choice
A reason that some goods were scarce during World War II was that the war:
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Your opportunity cost of going to a movie is:
A
the value of the next best alternative you give up to attend the movie
B
the price of the movie ticket
C
the time spent watching the movie
D
the total amount of money you spend at the theater
Verified step by step guidance1
Understand the concept of opportunity cost: it is the value of the next best alternative that you give up when making a choice.
Identify the alternatives involved in the decision to go to a movie, such as spending time doing something else or spending money on other activities.
Recognize that the opportunity cost is not just the monetary price of the movie ticket, but also includes what you sacrifice by choosing the movie over other options.
Note that the time spent watching the movie has value because you could have used that time for another activity, which contributes to the opportunity cost.
Conclude that the opportunity cost of going to a movie is the value of the next best alternative you give up to attend the movie, encompassing both time and money considerations.
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