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
You might also like to view...
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
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%
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
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.