Opportunity cost can best be defined as

A. the value of the next-highest-ranked alternative.
B. the value of all of the alternatives sacrificed.
C. the interest cost of financing a business loan at the bank.
D. There is no real definition for opportunity cost.


Answer: A

Economics

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The productivity curve is a relationship between ________ and ________

A) real GDP per hour of labor; capital per hour of labor B) real GDP per hour of labor; capital C) capital per hour of labor; labor per hour of capital D) real GDP; hours of labor E) real GDP; capital

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Billy is considering the purchase of a rental house. The house costs $240,000 and it will generate annual revenues of $15,000 and annual expenses of $3,000. What is the internal rate of return of this investment?

A) 5% B) 7.5% C) 3.75% D) 24%

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In 2008, federal, state, and local redistribution programs were most close to

a. $20.0 trillion b. $200.0 billion c. $2.0 billion d. $200.0 trillion e. $2.0 trillion

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If the price of textbooks increases by one percent and the quantity demanded falls by one-half percent, then the price elasticity of demand is equal to:

A. 0.5. B. 5. C. 2. D. 0.05.

Economics