The Opportunity Cost of Good a in Terms of Good

question 90

Multiple Choice

The opportunity cost of good A in terms of good B is equal to the

• A) money price of good A minus the money price of good B.
• B) money price of good B minus the money price of good A.
• C) ratio of the money price of good B to the money price of good A.
• D) ratio of the money price of good A to the money price of good B.

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Definitions:

Monthly Payment

Periodic payments made towards loans, typically calculated monthly, covering interest and principal repayment.

Rate of Return

The rate of return is a measure of the profitability of an investment, calculated as the percentage of the total amount of returned income to the amount of the investment’s initial cost.

Annual Dividend

An annual profit sharing from a corporation to its shareholders, usually in the form of a payment.

Future Value

The future financial worth of an asset or cash that equates to a designated current sum.