The Concept of Opportunity Cost

question 2

Multiple Choice

The concept of opportunity cost

• A)cannot be explained by using a production possibilites frontier.
• B)explains that goods are swapped for other goods.
• C)implies that when a person is more efficient in the production of one good, he should produce that good and exchange it for some good that he is relatively less efficient at producing.
• D)implies that a double coincidence of wants must be present for exchange to take place.
• E)implies that because productive resources are scarce, we must give up some of one good to acquire more of another.

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Definitions:

Acquiescence

Silent or passive acceptance or agreement without protest.

Concealment

The act of hiding or withholding important information, particularly in legal or financial contexts.

Material

Referring to facts or information that are significant or essential to the issue or subject at hand.

Misrepresentation

A false statement of fact made by one party to another, which, while not constituting a term of the contract, induces the other party to enter the contract.