Opportunity Cost Is the

question 139

Multiple Choice

Opportunity cost is the

• A)cost incurred when one fails to take advantage of an opportunity.
• B)cost incurred in order to increase the availability of attractive opportunities.
• C)cost of the best option forgone as a result of choosing an alternative.
• D)drudgery of the undesirable aspects of an option.

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Definitions:

Ppf (Production Possibility Frontier)

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, when resources are fully and efficiently utilized.

Efficiently

Achieving maximum productivity with minimum wasted effort or expense.

Production Inefficiency

A situation where resources are not utilized in the best possible manner, resulting in wasted potential output.

Production Possibility Frontier

A graphical representation that shows the maximum combination of two goods or services that can be produced within a given time period, given available resources and technology.