At a Point on a Production Possibilities Curve, Opportunity Cost

question 153

Multiple Choice

At a point on a production possibilities curve, opportunity cost of more capital goods today is

• A) fewer capital goods in the future.
• B) fewer consumer goods in the future.
• C) fewer consumer goods today.
• D) more unemployed resources in the future.

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Definitions:

Tax Advantages

Financial benefits derived from tax laws, which reduce a person or a company's tax burden.

Going-private Transaction

involves the purchase of all publicly held shares of a public corporation by private investors, making it a private entity.

Cost Reduction

A strategic financial action aimed at decreasing expenses to improve profitability.

Stock Acquisition

The process of obtaining ownership in a company by purchasing its stock.