Multiple Choice
Which term best completes the sentence: '______ economic resources means limited goods and services.'?
90
views
0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
An opportunity cost can make decision making difficult because _____.
A
it guarantees that all choices will lead to the same outcome
B
it requires individuals to consider the value of the next best alternative forgone
C
it allows unlimited resources to satisfy all wants
D
it eliminates the need to compare different options
Verified step by step guidance1
Understand the concept of opportunity cost: it is the value of the next best alternative that must be forgone when making a decision.
Recognize that decision making involves comparing the benefits and costs of different options, where opportunity cost represents the cost of what you give up.
Analyze why opportunity cost makes decision making difficult: because it requires individuals to evaluate and compare the value of alternatives that are not chosen.
Eliminate incorrect options by understanding that opportunity cost does not guarantee the same outcome, does not allow unlimited resources, and does not eliminate the need to compare options.
Conclude that the correct reason is that opportunity cost requires individuals to consider the value of the next best alternative forgone, which adds complexity to decision making.
Related Videos
Related Practice
