Choose the Correct Statements

question 52

Multiple Choice

Choose the correct statements.
1.Opportunity cost of a good is the increase in the quantity produced of one good divided by the decrease in the quantity produced of another good as we move along the PPF.
2.The opportunity cost of an action is the highest- valued alternative forgone.
3.Opportunity cost is a ratio.
4.There is no relationship between the opportunity cost of producing an additional good measured on the
X- axis and the opportunity cost of producing an additional good measured on the y- axis.

• A)Statements 3 and 4 are correct.
• B)Statements 2 and 3 are correct.
• C)Statements 2 and 4 are correct.
• D)Statements 1 and 3 are correct.
• E)Statements 1 and 2 are correct.

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Definitions:

Draft

A preliminary version of a piece of writing, document, plan, or design that may be subject to further revision.

Transfer Warranties

Guarantees made concerning the condition or legal status of goods at the time of their transfer to a new owner.

Discharged

The completion or termination of an obligation such as a debt or legal duty.

Liability

The state of being legally responsible for something, particularly in terms of debts or legal actions.