Which of the Following Statements Regarding "Opportunity Costs" Is True

question 76

Multiple Choice

Which of the following statements regarding "opportunity costs" is true?

• A) These costs are recorded routinely by most modern cost accounting systems.
• B) These costs relate to the benefit lost or foregone when a chosen option (course of action) precludes the benefits of an alternative option from being realized.
• C) These costs are generally deductible for federal income tax purposes in the U.S.
• D) In terms of most short-run decisions, they are irrelevant.
• E) They are usually considered a sunk cost associated with one or more decision alternatives.

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Definitions:

Alertness

A state of active attention and readiness to respond to stimuli or challenges presented.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, hunger, thirst, and other homeostatic systems.

Neural System

The network of nerve cells and fibers which transmits nerve impulses between parts of the body, enabling communication between the brain, spinal cord, and other areas.

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions such as fear and pleasure, as well as drives like those related to hunger and sex.