The correct economic term that describes the option of mowing lawns, given that you chose to volunteer, is opportunity cost. This term refers to the value of the next best alternative that you give up when you make a choice. In this case, by choosing to volunteer, the opportunity cost is the cash you would have earned from mowing lawns.
You have several options for how to spend your Saturdays. Your top options are volunteering with an animal rescue or mowing lawns in the neighborhood for cash. You choose to volunteer. Which economic term now describes the option of mowing lawns?
Benefit
Scarcity
Resource use
Opportunity cost
1 answer
1 answer