chapter 3-opportunity cost
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next best alternative forgone when making a decision
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8 Terms
what is forgone
given up
what is the relationship between scarcity, choice and opportunity cost
scarcity leads to choice and every choice involves an opportunity cost
how do consumers face opportunity cost
they have limited income and must choose how to spend it
why cant consumers buy everything they want
because their income and resources are limited
how do workers face opportunity cost
workers must choose how to use their time and which jobs to take
how do producers face opportunity cost
they have limited resources and must choose which goods and services to produce
how do governments face opportunity cost
governments have limited budgets and must choose how to allocate their resources
why cant governments provide unlimited amounts of all public services
because government resources and tax revenue are limited