Which Situation Is The Best Example Of Opportunity Cost?

Which region specializes in diamonds Brainly?

Sub-Saharan Africa specializes in diamonds..

Why is opportunity cost important?

Opportunity Cost helps a manufacturer to determine whether to produce or not. He can assess the economic benefit of going for a production activity by comparing it with the option of not producing at all. He may invest the same amount of money, time, and resources in another business or Opportunity.

What kind of advantage does a country have if it can make a product?

In economic terms, a country has a comparative advantage when it can produce at a lower opportunity cost than that of trade partners. While a country cannot have a comparative advantage in all goods and services, it can have an absolute advantage in producing all goods.

What is opportunity cost in this scenario?

Examples of Opportunity Cost. Someone gives up going to see a movie to study for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it. … The opportunity cost of taking a vacation instead of spending the money on a new car is not getting a new car.

Which region is most likely to export bananas to United States?

Central AmericaWhich region is most likely to export bananas to the United States ? Central America .

What is the best definition of opportunity cost?

Opportunity cost is the forgone benefit that would have been derived by an option not chosen. To properly evaluate opportunity costs, the costs and benefits of every option available must be considered and weighed against the others.

What is an opportunity cost quizlet?

Explain the concept of opportunity cost. Opportunity Cost is when in making a decision the value of the best alternative is lost. e.g. choosing electricity over gas, the opportunity cost is what you’ve lost from not picking gas.

What is an example of opportunity cost in your life?

A student spends three hours and $20 at the movies the night before an exam. 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).

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.”

Which situation might cause a country to specialize?

Answer: Environmental conditions, inner-social conditions, and trade conditions. A country cannot choose to be where the oil is at, or if rice can grow there, so they will specialize in what they can get to grow there, much like most Middle Eastern countries and oil.

What is the other name of opportunity cost?

Economic costThe alternative name of opportunity cost is Economic cost.

What role does competition play in international trade?

What role does competition play in international trade? It drives down prices for consumers.

Which situation is the best example of opportunity cost quizlet?

Which situation is the best example of opportunity cost? A country chooses to produce bananas instead of wheat. How does specialization enable countries to trade with one another? A country can make and sell goods affordably and buy goods that it is inefficient at making.

Which region specializes in diamonds?

Sub-saharan AfricaSub-saharan Africa is a region that specializes in diamonds.

What is opportunity cost explain with example?

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 can’t spend the money on something else.

What is opportunity cost simple words?

Opportunity cost is the value of the next best thing you give up whenever you make a decision. It is “the loss of potential gain from other alternatives when one alternative is chosen”. … For example, opportunity cost is how much leisure time we give up to work.

What kind of advantages does a country have if it can make a product more inexpensively?

What kind of advantage does a country have if it can make a product more inexpensively? an absolute advantage. The United States is said to have an absolute advantage in producing food compared with Japan.

Which region is most likely to export bananas?

Ecuador is the largest exporter of bananas in the world and its share of world banana trade is on the increase. Exports expanded from one million tonnes in 1985 to 3.6 million tonnes in 2000.