QQuestionEconomics
QuestionEconomics
"Which situation is the best example of opportunity cost?
A. A country chooses to produce bananas instead of wheat.
B. A country chooses to invest in manufacturing and agriculture.
C. A country chooses to specialize in producing paper products.
D. A country chooses to export all of its products."
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Answer
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Step 2: Understanding Opportunity Cost
Opportunity cost is the value of the next best alternative that must be given up when making a choice. It represents the potential benefits lost by choosing one option over another.
Final Answer
A country chooses to produce bananas instead of wheat. This option best exemplifies opportunity cost because it shows a direct trade-off between two alternative uses of resources, highlighting the core economic principle of making choices that involve sacrificing one option to pursue another.
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