How Are Money Cost and Opportunity Cost Related to Each

question 100

Multiple Choice

How are money cost and opportunity cost related to each other?

• A)If markets function well, they are closely related.
• B)They are always identical in any economic system.
• C)Opportunity cost always exceeds money cost.
• D)Money cost is less than or equal to opportunity cost.
• E)In a market economy, they are always equal to each other.

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Definitions:

Gain Recognize

Gain Recognize refers to the process of reporting the profit earned from the sale of an asset for tax purposes.

Installment Sale

A sale of property where the buyer pays the price in periodic installments and the seller recognizes income for tax purposes with each payment.

Form 6252

An IRS form used to report income from the sale of property under an installment sale agreement.

Schedule D

A form used with a tax return to report capital gains and losses incurred during the reporting period.