What Is the Opportunity Cost of Obtaining More of One

question 189

Multiple Choice

What is the opportunity cost of obtaining more of one good, as it relates to the production possibilities frontier?

• A) the amount of the other good that must be given up
• B) the market price of the additional amount produced
• C) the amount of resources that must be devoted to its production
• D) the number of dollars that must be spent to produce it

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Definitions:

Diversify

The strategy of allocating investments or resources across a variety of different areas to reduce risk.

504 Loan Program

A Small Business Administration program that provides long-term, fixed-rate financing to small businesses for major fixed assets, such as land and buildings.

Certified Development Company

A nonprofit organization sponsored either by private interests or by state or local governments.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and vehicles.