Figure 1.3 -The Giving Up of a Good or Activity in Order

question 7

Multiple Choice

Figure 1.3

-The giving up of a good or activity in order to obtain some other good or activity is called:

• A)a tradeoff.
• B)a cost analysis.
• C)a random choice.
• D)an opportunity cost.
• E)a sunk cost.

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Definitions:

Economic Profit

The difference between the total revenue received from the sale of an output and the total opportunity costs of the inputs used.

Economic Losses

Monetary losses incurred from business operations or other economic activities, often delineated from accounting losses.

Positive Profit

A financial gain that occurs when the revenues earned exceed the costs incurred.

Production Level

The quantity of goods or services that a firm or economy produces within a given time period.