Which of the Following Statements Best Describes the Idea of Opportunity

question 28

Multiple Choice

Which of the following statements best describes the idea of opportunity cost and writing a test?

• A) There is no opportunity cost of writing a test because it only applies to people that are working.
• B) There is no opportunity cost of writing a test because they are so important.
• C) The opportunity cost of writing a test is the wages given up from not working plus the loss of time studying for another test.
• D) The opportunity cost of writing a test is the time given up for doing an important assignment for another class.

---

Definitions:

Foreign Subsidiary

A company owned in part or whole by another company from a different country, operating under the laws of the country where it is located.

Cash

Money in the form of bills or coins, available for transactions or as part of an organization's liquid assets.

Functional Currency

The primary currency used by a business entity in its financial statements, reflecting the economic environment in which it primarily operates.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.