The Opportunity Cost of Producing Good a Is Defined to Be

question 32

Multiple Choice

The opportunity cost of producing good A is defined to be

• A)the cost of having to get by using something else in place of good A.
• B)the money cost of the factors of production used in good A.
• C)what must be sacrificed of other goods to get an additional unit of good A.
• D)the cheapest method of producing good A.
• E)the retail price of good A.

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Definitions:

Liberal Credit Terms

Credit conditions that are lenient, offering borrowers lower interest rates or extended repayment terms.

Restrictive Policy

A policy intended to limit or regulate certain activities, often used in the context of fiscal or monetary policy to control economic variables.

Wages

Payments made by employers to employees, usually at hourly, daily, or piecework rates, for the labor or services provided.

Source Of Cash

Activities or transactions that increase the available cash in an organization, such as sales, issuing bonds, or taking out loans.