Choose the Correct Statements

question 113

Multiple Choice

Choose the correct statements. 1.Opportunity cost of a good is the increase in the quantity produced of one good divided by the decrease in the quantity produced of another good as we move along the PPF.
2.The opportunity cost of an action is the highest-valued alternative forgone.
3.Opportunity cost is a ratio.
4.There is no relationship between the opportunity cost of producing an additional good measured on the x-axis and the opportunity cost of producing an additional good measured on the y-axis.

• A)Statements 1 and 3 are correct.
• B)Statements 1 and 2 are correct.
• C)Statements 2 and 3 are correct.
• D)Statements 2 and 4 are correct.
• E)Statements 3 and 4 are correct.

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Definitions:

Third Party

An entity not directly involved in a transaction or agreement but who may be affected by it or have interests in its outcome.

Liable

Being legally responsible for something, typically referring to the obligation to pay damages or compensation.

Contracts

Legally binding agreements between two or more parties that are enforceable by law.

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, resulting in injury or harm constituting the basis for a claim by the injured party.