Whenever a choice is made, something is given up.
The opportunity cost
of a choice is the value of the best alternative given up. Scarcity is the condition of not being able to have all of the goods and services one wants.
What is it called when you choose between alternatives for a resource?
Scarce resources diminish as they are used and almost all resources are scarce. … The cost of using a resource is called
the opportunity cost
: the value of the next best alternative that you could be using the resource for instead.
What is an alternative that must be given up when one choice is made rather than another?
Trade-off
– alternatives that must be given up when one is chosen rather than another. 17. Opportunity cost – cost of the next best alternative use of money, time, or resources when one choice is made rather than another.
What is the next best alternative use of a resource?
When economists refer to the “
opportunity cost
” of a resource, they mean the value of the next-highest-valued alternative use of that resource. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you cannot spend the money on something else.
When making a decision the next best alternative is called in economics?
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 giving up one thing for another?
Term.
Tradeoff
. Definition. the act of giving up one thing of value to gain another thing of value.
What is the meaning of alternative uses?
Related Definitions
Alternative uses means [using]
when a person uses litter or other animal manure in environmentally acceptable ways
, as determined by the Department, other than by direct land application in an unprocessed form.
What is the struggle among sellers to attract consumers?
Competition
: the struggle among sellers to attract consumers with the best products at the lowest prices.
What are the 3 Nations that have mixed economy?
Countries that have a mixed economy include
the United States, the United Kingdom, Sweden, Iceland, France, and Germany
.
What is opportunity cost and its importance in decision making?
“Opportunity cost is
the cost of a foregone alternative
. If you chose one alternative over another, then the cost of choosing that alternative is an opportunity cost. Opportunity cost is the benefits you lose by choosing one alternative over another one.”
What is a real life example of opportunity cost?
The opportunity cost is
time spent studying and that money to spend on something else
. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources (land and farm equipment). A commuter takes the train to work instead of driving.
Who is founder of economics?
Adam Smith
was an 18th-century Scottish economist, philosopher, and author, and is considered the father of modern economics. Smith is most famous for his 1776 book, “The Wealth of Nations.”
What is alternative choice?
n. 1
a possibility of choice
, esp. between two things, courses of action, etc. 2 either of such choices. we took the alternative of walking.
What type of economy is known for using the barter system?
Which economic system uses bartering to trade goods? It is found in
the traditional economy
.
What is the meaning of alternative uses in economics?
alternative use of resorces means
simply the diffrent ways in which a resource can be used
. Example- the alternative uses of land are- 1.it can be used to grow crops. 2.it can be used to build school.
When one is making a choice the cost of what one gives up is called?
Opportunity cost
is what you give up (the benefits of the next best alternative) when you make a choice.
