An Opportunity Cost Is

question 32

Multiple Choice

An opportunity cost is:

• A)a cost which may be saved by not adopting an alternative.
• B)the difference in total costs which results from selecting one alternative instead of another.
• C)a cost which may be shifted to the future with little or no effect on current operations.
• D)the potential benefit forgone by selecting one alternative instead of another.

Recognize the principal-agent problem in corporations and its implications for corporate governance.

Evaluate the effectiveness of crime control programs through cost-benefit analysis.

Understand the free-rider problem and its significance in the context of public goods.

Comprehend the role of government in reallocating resources towards public goods through taxation and spending.

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Definitions:

Subjective Well-Being

An individual's self-assessment of their own happiness and life satisfaction.

Happiness

A state of well-being and contentment characterized by positive emotions ranging from contentment to intense joy.

Fulfillment

A feeling of happiness or satisfaction resulting from achieving one's potential or realizing one's desires.

Psychological Resilience

The ability of an individual to mentally or emotionally cope with a crisis or to return to pre-crisis status quickly.