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:

Debt Securities

represent money that is borrowed and must be repaid, with terms that define the amount borrowed, interest rate, and maturity date, commonly issued in the form of bonds, notes, or bills.

Bonds

Debt securities issued by corporations or governments to raise funds, whereby the issuer owes the holders a debt and is obliged to pay interest.

De Jure Corporation

A corporation that is fully in compliance with all state laws and therefore officially recognized as a legal entity.

De Facto Corporation

A company that operates as if it were legally incorporated, despite not having completed the necessary incorporation processes, and may thus be treated as a corporation in many contexts.