Which of the Following Does Not Illustrate Opportunity Cost

question 129

Multiple Choice

Which of the following does not illustrate opportunity cost?

• A) If I study, I must give up going to the football game.
• B) If I buy a computer, I must do without a 35" television.
• C) More consumer spending now means more spending in the future.
• D) If I spend more on clothes, I must spend less on food.

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Definitions:

Output

Output refers to the amount of goods or services produced by a firm or economy within a certain period.

Physical Capital

Consists of tangible, man-made objects that a business uses to produce goods or services, such as buildings, machinery, and equipment.

Short Run

A period in economics where at least one factor of production is fixed, limiting the ability of the economy or firm to adjust to changes in demand or supply.

Productive

Relating to or involving the creation of goods or services that satisfy human wants; the efficiency and effectiveness in producing outputs from inputs.