Opportunity Cost of an Action Is

question 130

Multiple Choice

Opportunity cost of an action is

• A)the best choice that can be made.
• B)the highest-valued alternative forgone.
• C)the money cost.
• D)the comparative cost.
• E)the absolute cost.

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Definitions:

Compounded Annually

Interest on an investment or loan that is calculated once a year on both the initial principal and the accumulated interest from previous periods.

Future Value

The value of an investment or cash flow at a specific future date, considering compounding interest or returns.

Invested

The act of allocating resources, often money, into something to earn a financial return or achieve another economic benefit.

Annually

Refers to an occurrence or calculation done once every year.