Which phrase best defines the term “opportunity cost”? A. What a country produces when it specializes in a good or service.
B. What a country gives up when it chooses to produce a good or service.
C. What a country gains when it chooses to produce a good or service.
D. What a country invests in a particular good or service.
The correct answer is B. What a country gives up when it chooses to produce a good or service.
Explanation: Opportunity cost refers to the value of the next best alternative that is forgone when making a decision. In this context, it means that when a country decides to use its resources to produce a particular good or service, it forgoes the potential benefits of producing another good or service. Understanding opportunity cost helps in evaluating the trade-offs involved in any economic decision.