| Term | Opportunity cost | | Definition | The concept of opportunity cost is commonly used in economics; it is measured by reference to the opportunities foregone at the time an asset or resource is used, as distinct from the costs incurred at some time in the past to acquire the asset, or the payments which could be realised by an alternative use of a resource (e.g. the use of labour in a voluntary capacity being valued at the wages which could have been earned in a paid job). | | Paragraphs | 1.60. |
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