Multiple Choice
In a world characterized by scarcity, which of the following will we never be able to do?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which of the following scenarios demonstrates a situation with no opportunity cost?
A
A farmer uses all available land to grow wheat, giving up the chance to grow corn.
B
A person finds an abandoned wallet with money and keeps it, with no alternative use or claim to the wallet.
C
A person receives a free concert ticket and attends the concert instead of studying for an exam.
D
A student chooses between two job offers and accepts one, forgoing the other.
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.
Analyze each scenario to identify if there is a trade-off, meaning something valuable is given up to pursue the chosen option.
For the farmer using land to grow wheat instead of corn, recognize that the opportunity cost is the corn that could have been grown.
For the person attending a concert instead of studying, the opportunity cost is the potential benefit from studying (like a better exam score).
For the student choosing between two job offers, the opportunity cost is the job offer that was not accepted.
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