The most desirable alternative somebody gives up as a result of a decision is the opportunity cost .
What is the most desirable alternative someone gives up as a result of a decision?
The most desirable alternative given up as a result of a decision is known as opportunity cost . Trade-offs are all the alternatives that we give up whenever we choose one course of action over others.
What is it called when a person gives up when making a decision?
Opportunity Cost . refers to what a person gives up when a decision is made. This cost, also called a trade-off, may involve one or more of your resources (time, money, and effort). Personal Opportunity Costs. may involve time, health, or energy.
What is the most attractive trade-off as the result of a decision called?
The most attractive trade-off as the result of a decision is called a(n) . . . opportunity cost . Scarcity is not usually a problem in economics.
What you give up when you choose one alternative over another is called?
Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. When economists use the word “cost,” we usually mean opportunity cost.
What shows alternative ways to use an economy's productive resources?
A production possibilities curve is a graph that shows alternative ways to use an economy's productive resources.
Which of the following is the best definition of economics quizlet?
What is the best definition of economics? The study of how society's scarce resources are allocated . The fundamental question of economics is how societies deal with the problem of scarcity.
What are alternative choices that are given up in favor of the choice we select *?
Opportunity cost is the value of the best alternative forgone in making any choice. Ex: If you choose to spend $20 on a potted plant, you have simultaneously chosen to give up the benefits of spending the $20 on pizzas or a paperback book or a night at the movies.
What is the cost of next best alternative forgone?
Opportunity cost is the value of the next best alternative forgone as a result of making a decision. Opportunity cost is a function of scarcity.
What is tradeoff cost?
In economics, a trade-off is defined as an “opportunity cost .” For example, you might take a day off work to go to a concert, gaining the opportunity of seeing your favorite band, while losing a day's wages as the cost for that opportunity.
Why are all choices economic choices illustrate your answer with examples?
All choices are economic choices because with every choice we make, we are (sometimes subconsciously) analyzing the costs and benefits of our options . Our choices are guided by self-interest and every choice we make involves some kind of cost, whether it be time or money or something else.
Which sentence best defines economics?
Economics is a social science that studies how individuals, governments and firms allocate the resources in an economy to obtain the maximum satisfaction of unlimited human wants .
What would be the best definition of economics?
Economics is a social science concerned with the production, distribution, and consumption of goods and services . It studies how individuals, businesses, governments, and nations make choices about how to allocate resources.
What is the process of choosing which wants among several options will be satisfied?
The process of choosing which wants, among several options, will be satisfied is called economic decision making . In a traditional economy, goods and services are produced the way they have always been produced.
What is the benefit or satisfaction gained from the use of a good or service?
Utility : benefit or satisfaction gained from the use of a good and service. When people economize, people consider both incentives and utility.
What is the name of the graph that shows alternative ways to use resources?
Key Points. The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.
What is Frontier Economics?
In business analysis, the production possibility frontier (PPF) is a curve that illustrates the possible quantities that can be produced of two products if both depend upon the same finite resource for their manufacture. PPF also plays a crucial role in economics.
Which definition of economics is best give reasons in support of your answer?
Answer: economic is the social science that deals with production & consumption of goods and services. Explanation: in this generation people want to produce more and more goods and consumer want to consume more goods so this definition is best.
Can an economy's resources be over utilized?
Economic resources are the inputs we use to produce and distribute goods and services . ... Misallocation or improper use of resources may cause businesses, and even entire economies, to fail.
Which of the following is the best definition of economics from the choices provided Economics is the study of?
Economics is the study of how people choose to allocate their scarce resources to satisfy their unlimited wants .
Which of the following is a positive economic statement?
which of the following is a positive economic statement? Positive economic statements are statements of fact that imply no value judgment . Notice that the correct response merely stated what would happen if minimum wage went up and made no statement about whether that was good or bad.
What are alternative choices in economics?
All choices mean that one alternative is selected over another. Selecting among alternatives involves three ideas central to economics: scarcity, choice, and opportunity cost .
Is the next best alternative foregone when an economic decision is made?
The opportunity cost is the value of the next best alternative foregone. Every decision necessarily means giving up other options, which all have a value. The opportunity cost is the value one could have derived from using the same resources another way, though this is not always easily quantifiable.
What term describes the difference in value between the best option and the next best alternative that was not chosen?
Opportunity cost is the value of the benefits of the foregone alternative, of the next best alternative that could have been chosen, but was not.
What means comparative advantage?
Comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners . A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize stronger sales margins.
What does the term absolute advantage mean?
absolute advantage, economic concept that is used to refer to a party's superior production capability . Specifically, it refers to the ability to produce a certain good or service at lower cost (i.e., more efficiently) than another party.
Why do decisions involve trade-offs?
Every decision involves trade-offs because every choice you want results in picking it over something else . ... Opportunity cost means choosing the better one of two ideas. There will always be an alternative; what could have happened instead.
What are examples of economic choices?
Source 1 A food market is an example of the economic choice made by a fruit and vegetable business choosing to sell their products to consumers, and buyers making the choice to purchase the products that will benefit them.
What are some economic decisions?
Economic decisions involve production, distribution, exchange, consumption, saving, and investment of economic resources . Economic decisions are made to serve the goals of individuals and private organizations (private goals) and society as a whole (public goals).
What are trade-off decisions?
A trade-off (or tradeoff) is a situational decision that involves diminishing or losing one quality, quantity, or property of a set or design in return for gains in other aspects .
What are financial tradeoffs?
In economics, the term trade-off is often expressed as an opportunity cost , which is the most preferred possible alternative. A trade-off involves a sacrifice that must be made to get a certain product or experience. A person gives up the opportunity to buy ‘good B,' because they want to buy ‘good A' instead.
What is economic decision making?
Economic decision making, in this book, refers to the process of making business deci- sions involving money . All economic decisions of any consequence require the use of some sort of accounting information, often in the form of financial reports.
Which statement best defines efficiency?
The term efficiency refers to the peak level of performance that uses the least amount of inputs to achieve the highest amount of output. Efficiency requires reducing the number of unnecessary resources used to produce a given output , including personal time and energy.
Which problem would a market economy solve more effectively than other economies?
Market economies solve the problem of scarcity . Market economies are more efficient than centrally-planned economies. A key feature of market economies is that market economies: are based solely on consumer spending.
Is the branch of economics that studies decision making for the economy as a whole?
Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy.
Who decides what needs and wants will be satisfied with the goods and services produced in a market economy?
In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a (3) free-market economy are influenced by the pressures of competition, supply, and demand.
Which of the following best explains why marketers are attracted to the Brics countries?
Which of the following best explains why marketers are attracted to the BRICS countries? ... These countries offer large markets with no language or cultural barriers .
When you must give something up in order to get something else it is called?
Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. When economists use the word “cost,” we usually mean opportunity cost.
