Which of the Following Is an Example of Opportunity Cost

question 25

Multiple Choice

Which of the following is an example of opportunity cost?

• A)The Chinese food that you gave up when you chose to eat Italian food.
• B)The tuition that you pay to attend college.
• C)For a professor of economics,the pleasure that he or she derives from teaching economics.
• D)Sweets given up by a person who would never eat them even if he or she could.
• E)The price paid for a ticket when you go to the movies.

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Definitions:

Accounts Receivable Period

The typical duration in days that a company requires to receive payments from its sales made on credit.

Restrictive Short-Term Financial Policy

A financial strategy that prioritizes maintaining a lower level of current assets relative to liabilities, often to maximize profitability at the expense of liquidity.

Marketable Securities

Financial instruments that can be quickly converted into cash, such as stocks, bonds, or treasury bills, with minimal loss of value.

Short-Term Debt

A financial obligation that is due to be repaid within a year or less.