How does opportunity cost affect people's wants and needs?
(1 point)
• It changes the supply and demand of goods.
• It requires them to make a choice.
• It requires them to be producers and consumers
• Opportunity cost does not impact wants and needs.
• It requires them to make a choice.
• It requires them to make a choice.
Opportunity cost refers to the value of the next-best alternative that is forgone when a choice is made. When people have limited resources or time, they are faced with the need to make choices. These choices involve trade-offs, where one option is chosen over another. By making choices, people are determining what they want or need most at a given time and sacrificing other options. Thus, opportunity cost affects people's wants and needs by requiring them to make choices between various alternatives.
The correct answer is: It requires them to make a choice.
Opportunity cost refers to the value of the next best alternative that is forgone when making a choice. When individuals have wants and needs, they often have multiple options to satisfy those wants and needs. However, due to limited resources (such as time, money, and energy), people must choose between different alternatives.
For example, let's say you have $20 and you want to buy a new book or go out for dinner. You cannot have both because you can only spend the $20 on one option. Choosing to buy the book means you are giving up the opportunity to have a delicious meal. Conversely, if you decide to go out for dinner, you are sacrificing the opportunity to own a new book. This is the concept of opportunity cost - the value of what you give up when you choose one option over another.
So, opportunity cost influences people's wants and needs by requiring them to make choices based on their available resources and the alternative options they have.