The Opportunity Cost of a One-Unit Increase in an Activity

question 246

Multiple Choice

The opportunity cost of a one-unit increase in an activity

• A) is greater than the marginal benefit.
• B) is called sunk cost.
• C) decreases as you do more of it.
• D) is called marginal cost.
• E) is measured by what the person is willing to give up to get one more unit of the activity.

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Definitions:

Private Ownership

The legal right held by individuals or entities to own property or businesses, allowing for control and use exclusive of government or public intervention.

Testator's Marriage

The legal union of a person who has made a will, potentially affecting the distribution of their estate upon their death.

Intestacy Laws

State statutes that specify how property will be distributed when a person dies intestate (without a valid will).

Surviving Spouse

The spouse who remains alive after the other spouse passes away, often referenced in the context of inheritance laws or benefits.