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Miguel chose to save for a car instead of traveling around Europe with friends. Though he was sad to miss the trip, he knew it was necessary if he wanted the car.

What does this scenario BEST demonstrate?

A. Opportunity cost
B. Inflation
C. Passive income
D. Personal risks



Answer :

GinnyAnswer

Final answer:

The scenario illustrates the concept of opportunity cost where Miguel chooses to save for a car over traveling with friends, showcasing the value of the next best alternative in decision-making.


Explanation:

Opportunity cost is the concept demonstrated in the scenario where Miguel decides to save for a car instead of traveling with friends. By choosing the car, he gives up the opportunity to travel, which represents the value of the next best alternative. Economists often use the idea of opportunity cost to analyze decision-making and trade-offs.


Learn more about Opportunity cost here:

https://brainly.com/question/37051624


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