In Order to Acquire More of a Good We Must

question 27

Multiple Choice

In order to acquire more of a good we must sacrifice production of another good (because resources are in limited supply) . What concept is this an illustration of?

• A) ceteris paribus
• B) specialization
• C) opportunity cost
• D) exchange

---

Definitions:

Cost Method

A method of accounting for equity investments representing less than 20% of the outstanding shares of the investee. The purchase is at original cost, and any gains or losses upon sale are recognized by the difference between the sale proceeds and the original cost.

Parent Company

The corporation owning all or a majority of the voting stock of the other corporation.

Voting Stock

Shares that grant the shareholder voting rights in corporate decisions, typically involving the election of the board of directors.

Interest Revenue

Income earned from investments, loans, or other earning assets that yield interest over time.