Which of the Following Is Defined as the Cost or Forgone

question 39

Multiple Choice

Which of the following is defined as the cost or forgone opportunity of using an asset already in use by the firm, or a person already employed by the firm, in a new project?

• A) Net working capital cost
• B) Opportunity cost
• C) Shortage cost
• D) Cash cycle cost

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Definitions:

Government

An organized system that provides leadership and governance, enforces laws, and administers public policy and services to its citizens.

Inefficient Outcomes

Situations where resources are not allocated optimally, leading to wasted resources or unfulfilled potential in an economy.

Invisible Hand

A metaphor for the unseen forces that move the free market economy through competition for scarce resources.

Government's Economic Activity

Refers to the various ways governments influence or directly participate in the national economy, including taxation, spending, and regulation.