Figure 1.3 -The Giving Up of a Good or Activity in Order

question 7

Multiple Choice

Figure 1.3

-The giving up of a good or activity in order to obtain some other good or activity is called:

• A)a tradeoff.
• B)a cost analysis.
• C)a random choice.
• D)an opportunity cost.
• E)a sunk cost.

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Definitions:

Consumer Goods

Products and services that are purchased by individuals for personal consumption.

Capital Goods

Long-term assets used in the production of other goods and services, like machinery, buildings, and equipment.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured by GDP.

Opportunity Costs

Opportunity costs represent the benefits or values that are forfeited as a result of choosing one alternative over another.