The Potential Benefit That Is Given Up When One Alternative

question 233

True/False

The potential benefit that is given up when one alternative is selected over another is called a sunk cost.

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Definitions:

Investment Spending

Expenditures on capital goods used to increase productive capacity or efficiency, including factories, machinery, and technology.

National Election

A formal and organized choice by vote of a country's electorate to select public officials or to make decisions on public policy.

Interest Rate

The percentage of a loan that is applied as interest for the borrower, usually indicated as an annual percentage of the remaining loan balance.

Expected Rate of Return

The profit or loss one anticipates on an investment relative to the original investment amount.