The Concept of Opportunity Cost

question 109

Multiple Choice

The concept of opportunity cost

• A) is irrelevant in socialistic economies because of central planning.
• B) suggests that the use of resources in any particular line of production means that alternative outputs must be forgone.
• C) is irrelevant if the production possibilities curve is shifting to the right.
• D) suggests that insatiable wants can be fulfilled.

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Definitions:

Guarantee

A formal promise or assurance, often provided by a third party, that certain conditions or obligations will be met.

RUPA

The Revised Uniform Partnership Act (RUPA) is a legal guideline adopted by several states to govern the formation, operation, and dissolution of partnerships.

Dissociation

The process by which a member's involvement in an entity's activities is terminated, either voluntarily or involuntarily.

Firm

A business organization, such as a partnership or corporation, engaged in commercial, industrial, or professional activities.