The Opportunity Cost of an Item Is

question 135

Multiple Choice

The opportunity cost of an item is:

• A)​greater during periods of inflation and lower during periods of deflation.
• B)​the highest valued alternative you give up to get that item.
• C)​the value of all available alternatives you sacrifice to get that item.
• D)​always equal to the dollar value of the item.

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Definitions:

Exemptions

Deductions allowed by law to reduce the amount of income that is subject to taxation.

Social Security

Social Security is a government program designed to provide financial support to retirees, disabled individuals, and survivors of deceased workers, funded through payroll taxes.

Medicare

Medicare is a federal health insurance program in the United States for people aged 65 and older, as well as for some younger people with disabilities.

Federal Withholding

Taxes that an employer withholds from an employee's salary or wages, paid directly to the government as prepayment of the employee's tax liability.