The value of the second-best alternative that a person gives up when making a choice represents
the opportunity cost
.
What represents the value of the second best alternative that a person gives up when making a choice ??
Opportunity cost
: The value of the second-best alternative that a person gives up when making one choice instead of another. Scarcity: An economic condition created by an excess of human wants over the resources necessary to satisfy them; an inability to satisfy all of everyone's wants.
What is the value of the best alternative?
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 a person gives up when making a choice?
Opportunity cost
is what you give up (the benefits of the next best alternative) when you make a choice.
What represents the value of the second best?
Answer Expert Verified
Opportunity cost
is the value of something that is given up to get something else that is wanted and is expressed as the value of the next best alternative to the choice made.
How do individuals make choices?
When individuals make decisions,
they are necessarily deciding between taking one course of action over another
. In doing so, they are choosing both what to do and, by extension, what not to do. The value of the next best choice forgone is called the opportunity cost.
What is the meaning of alternative forgone?
The condition of having to choose among alternatives.
A good for which the choice of one alternative requires that another be given up
. A good for which the choice of one use does not require that another be given up. The value of the best alternative forgone in making any choice.
Why opportunity cost is best forgone alternative?
It is not simply the amount spent on that choice. A good is scarce if the choice of one alternative requires that another be given up. … The opportunity cost of any choice is
the value of the best alternative forgone
in making it.
What we give up for when another alternative is chosen 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 represents the value of the second best alternative that a person gives up when making a choice quizlet?
The opportunity cost
should be expressed as the value of the next best alternative to the choice made.
Why does scarcity want every toy on the Magic Tree?
Why does Scarcity want every toy on the magic tree? [
Because she does not understand that she has to make a choice; no one can have everything they want
.]
Which factor determines who a society will produce?
Which factor determines who a society will produce goods and services for?
The economic system in the society
.
Reduce prices and create jobs
. This is the ideal economic outcome expected from all businesses today, not only in the long run, but also in the short term. Generally, lower prices allow more consumers to consume goods or services.
How do people make economic decisions?
Economists use the term marginal change to describe a small incremental adjustment to an existing plan of action. …
Rational people
often make decisions by comparing marginal benefits and marginal costs. Thinking at the margin works for business decisions.
What is the role of consumers in a pure market economy?
Consumers are
free to buy the goods and services that best fill their wants and needs
. Workers are free to seek any jobs for which they are qualified. A market economy is driven by the motive of self-interest. Consumers have the motive of trying to get the greatest benefits from their budgets.
How scarcity affects choices and decision making?
The ability to
make decisions comes with a limited capacity
. The scarcity state depletes this finite capacity of decision-making. … The scarcity of money affects the decision to spend that money on the urgent needs while ignoring the other important things which comes with a burden of future cost.
