Cost-Benefit Analysis- Micro Topic 1.5

When faced with a choice between two undesirable options, selecting the less undesirable one demonstrates a fundamental principle in economics. What is this principle?

• The law of diminishing returns

• The concept of scarcity

• Rational decision-making based on alternatives

• The paradox of value

What do economists call the quantifiable monetary benefits received from an action, such as higher income from education?

• Implicit benefits

• Total utility

• Explicit benefits

• Opportunity costs

In economics, what is the term for the total satisfaction or happiness a consumer receives from consuming a good or service, or the total revenue a firm receives from production?

• Marginal benefit

• Total utility

• Net benefit

• Consumer surplus

A student decides to attend a concert instead of working their part-time job. If they would have earned $40 from their job during the concert hours, and the concert ticket cost $50, what is the opportunity cost of attending the concert?

• $10

• $40

• $50

• $90