An Opportunity Cost Is

question 59

Multiple Choice

An opportunity cost is

• A) a cost that is charged against revenue in an accounting period.
• B) the foregone benefit from the best alternative course of action.
• C) the excess of operating revenues over operating costs.
• D) the cost assigned to the products sold during the period.

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Definitions:

Savings Rate

The savings rate is a measure of the proportion of disposable income that households save rather than spend on consumption.

Malthusian Theory

The hypothesis proposed by Thomas Malthus suggesting that population growth tends to outpace the production of food, potentially leading to starvation, disease, and conflict.

Retail Sales

The total value of goods and services sold to consumers through retail stores, considered an indicator of consumer spending and economic health.

Capital

Financial assets or the financial value of assets, such as cash and buildings, used by a business to generate wealth.