Which of the Following Statements Regarding Opportunity Costs Is True

question 20

Multiple Choice

Which of the following statements regarding opportunity costs is true?

• A)Opportunity costs are recorded as an expense since they are a cost of accepting another option.
• B)Opportunity costs are always incremental.
• C)Opportunity costs are unavoidable.
• D)The same decision will be reached whether or not opportunity costs are considered in an incremental analysis.

---

Definitions:

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, typically indicating inflation or deflation.

CPI Rose

Refers to an increase in the Consumer Price Index, indicating that the average prices of consumer goods and services have gone up, often a measure of inflation.

$7 Per Hour

A specified wage rate where an individual or worker is paid seven dollars for each hour worked.

Purchasing Power

The economic value of a currency depicted by the number of goods or services obtainable by a single monetary unit.