The Concept of Opportunity Cost

question 2

Multiple Choice

The concept of opportunity cost

• A)cannot be explained by using a production possibilites frontier.
• B)explains that goods are swapped for other goods.
• C)implies that when a person is more efficient in the production of one good, he should produce that good and exchange it for some good that he is relatively less efficient at producing.
• D)implies that a double coincidence of wants must be present for exchange to take place.
• E)implies that because productive resources are scarce, we must give up some of one good to acquire more of another.

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Definitions:

Type A Personality

A personality type characterized by competitiveness, impatience, aggressiveness, and a strong desire for achievement.

Relaxing

The act of reducing tension or anxiety, often through leisure activities or rest.

Short Term

A period of time that is immediate or not far in the future, usually considered to be within a few months up to a year.

Strong Feelings

Intense emotional states or reactions that are deeply felt and can influence thoughts and behavior.