What is the name of the economic concept that acknowledges that personal and financial resources are used for one purpose these resources cannot be used for other purposes? Technically, this concept refers to the value of the next best alternative that must be given up when one selects the best alternative when facing a choice.

This concept is called the opportunity cost.

Explanation:

The opportunity cost of any economic decision is the cost of giving up or sacrificing its alternative. We are aware that resources are limited and have alternative uses. We have to use these resources to satisfy unlimited wants and needs.

If we use resources for one purpose it cannot be used for another. So we have to make a decision on how to spend the resources, on which alternative use. If we select one alternative, we need to give up another. The cost incurred on sacrificing or giving up the other alternative is the opportunity cost of using the resource for the first alternative.