The term, _____ , refers to the potential benefit a person gives up when he or she decides to do one thing instead of another.
What are your choices?
What do you think the answer is?
Are these your choices?
A.)comparative advantage B.)opportunity cost C.)invisible hand D.)absolute advantage
Over time, _____ has gained power at the expense of
The term you are looking for is "opportunity cost." Opportunity cost is the potential benefit or value that one sacrifices or gives up when choosing to do one thing instead of another. It is essentially the value of the best alternative forgone or the next best option that could have been chosen. To understand opportunity cost, one must consider the trade-offs involved in decision-making.
To calculate opportunity cost, you need to compare the benefits of both options and determine what you would be giving up by choosing one over the other. For example, if you have the choice of either attending a party or studying for an exam, the opportunity cost of attending the party would be the potential academic performance you could have achieved by studying instead. It represents the value of the missed opportunity.
To further understand opportunity cost, ask yourself: "What other opportunity or alternative would I be giving up if I choose this option?" By considering the alternatives and evaluating their potential benefits, you can determine the opportunity cost associated with a particular decision.