Because Resources Are Scarce, the Opportunity Cost of Investment in Capital

question 73

Multiple Choice

Because resources are scarce, the opportunity cost of investment in capital is

• A) zero.
• B) forgone future consumption.
• C) forgone present consumption.
• D) infinite.

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Definitions:

Efficient Markets

A theory suggesting that all available information is already reflected in the prices of stocks and other securities, making it impossible to consistently achieve higher returns than the overall market.

Informed Citizen

An individual who is knowledgeable about societal, political, and economic issues, enabling them to participate effectively in public life.

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources.

Individual Households

Single units comprising one or more persons within an economy that make decisions about consumption, saving, and labor supply.