Read each question and choose the best answer.

Question

What are economists referring to when they say "choosing is refusing"?
A. Opportunity cost
B. "Guns or butter"
C. Marginal cost
D. Thinking at the margin

Answer 1

A. Opportunity cost

When economists say "choosing is refusing," they are referring to the concept of opportunity cost, which is the idea that when you choose one option, you are effectively refusing others and that the cost of that choice is the value of the next best alternative.