How Are Changes in Opportunity Cost Related to Decision-Making Behavior

question 37

Multiple Choice

How are changes in opportunity cost related to decision-making behavior?

• A) The lower the opportunity cost of doing an activity X, the more likely activity X will be done.
• B) The higher the opportunity cost of doing activity X, the more likely activity X will be done.
• C) Changes in the opportunity cost play no role in decision-making.
• D) The lower the opportunity cost of doing activity Y, the more likely activity X will be done.
• E) The higher the opportunity cost of doing activity Y, the less likely activity X will be done.

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Definitions:

British Securities

Stocks, bonds, or other financial instruments issued by companies or the government in the United Kingdom.

Total Return

The overall earnings on an investment, including both capital gains and income, over a specific time period.

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A repeat - Financial distributions made by companies to their shareholders, typically from the firm's earnings.

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The current market price for exchanging one currency for another for immediate delivery.