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

question 200

Multiple Choice

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

• A) past investment.
• B) past consumption.
• C) foregone present consumption.
• D) future consumption.

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Definitions:

Conspicuous Consumption

The spending of money on and the acquisition of luxury goods and services to publicly display economic power, status, or wealth.

Prestige And Status

Recognition and respect received from others based on achievements, position, or quality of character, which often influences social ranking.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to an interconnected world.

Worldwide Economic System

Refers to the global network of economic activities, trade, and financial systems that link national economies into an interdependent global economy.