The Opportunity Cost of a Good Increases as More of It

question 14

Multiple Choice

The opportunity cost of a good increases as more of it is produced because

• A)producing more of a good requires additional resources.
• B)resources are not equally productive in all activities.
• C)the number of forgone alternatives also increases.
• D)people want the good less as more is produced.
• E)there is no such thing as a free lunch.

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Definitions:

Cash Proceeds

The total amount of cash received from a transaction, such as the sale of an asset or a business operation.

Market Rate

The prevailing price or interest rate for goods, services, or securities in a particular market at a given time.

Interest Payments

Regular payments made to lenders as compensation for borrowing money, typically calculated as a percentage of the principal.

Par Value

A nominal value assigned to a share of stock as stated in the corporate charter, unrelated to its market value.