Which of the Following Does Not Illustrate Opportunity Cost

question 109

Multiple Choice

Which of the following does not illustrate opportunity cost?

• A)If I study, I must give up going to the movies.
• B)If I buy a computer, I must do without an iPod.
• C)The more I spend now means the more I spend in the future.
• D)If I spend more on books, I must spend less on jewellery.

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Definitions:

Sensitivity Analysis

A form of analysis that considers the impact of changing one or more inputs or assumptions on the resulting outcome.

Likelihoods

The probabilities or chances of different outcomes occurring.

Probabilities

A statistical measure that quantifies the likelihood of one or more events happening.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and the present value of cash outflows over time.