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Which of the Following Statements Are Correct

question 5

Multiple Choice

Which of the following statements are correct?
I. The "highest-valued alternative given up to get something" is the opportunity cost.
II. Wealthy economies don't experience opportunity costs.
III. Scarcity creates opportunity costs.


Definitions:

Marginally Profitable

Describes a business or investment that generates a slight profit above its break-even point.

Capital Gain

The profit earned from the sale of an asset when the selling price exceeds its purchase price.

Book Value

The net asset value of a company, calculated as total assets minus intangible assets (patents, goodwill) and liabilities.

Income Taxes

Taxes on an individual's or corporation's income imposed by the government.

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