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.

Interpret the market implications of basis points and their impact on bond prices.

Understand the definition and scope of psychology.

Distinguish between different research methodologies and their purposes in psychology.

Recognize the goals of psychology (description, understanding, prediction, and control).

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Definitions:

Order Cost

Expenses incurred in placing and receiving orders from suppliers, including costs related to processing, shipping, and handling.

Economic Order Quantity

The ideal order size to minimize total inventory costs including ordering, carrying, and stockout costs.

Variable Cost

A cost that varies with the level of output or production activity, increasing as production increases and decreasing as production decreases.

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, and opportunity costs.