An Uncertain Future Event Affecting the Consequence Associated with a Decision

question 32

Multiple Choice

An uncertain future event affecting the consequence associated with a decision is known as a

• A)chance event.
• B)decision alternative.
• C)decision node.
• D)payoff.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to do one thing instead of another.

Imported

Products or services imported from another country for the purpose of selling them.

Exported

Offerings or goods conveyed from one country to another for the objective of transaction or sale.

Production Possibilities Frontier

A curve demonstrating the maximum feasible amount of two goods that can be produced with available resources and technology.