An Opportunity Cost

question 68

Multiple Choice

An opportunity cost

• A) can be measured only when the decision involves expenditures of money.
• B) can be measured only when the decision involves spending time on one thing and not on another.
• C) is impossible to measure.
• D) is equal to the value of what is given up to make a purchase or take an action.
• E) exists for every decision made by individuals and businesses,but not by the government.

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Definitions:

Transfer Payment

A payment of money (or goods and services) by a government to a household or firm for which the payer receives no good or service directly in return.

Subsidies

Financial support extended to an economic sector (or institution, business, or individual) with the aim of promoting economic and social policy objectives.

Wage Payments

The act of providing remuneration to employees for their labor, usually in the form of a monetary payment over a specified time period.

Personal Income Tax Revenues

Government earnings collected from individuals based on their income, which vary depending on the income level.