Which of the Following Is an Example of Opportunity Cost

question 33

Multiple Choice

Which of the following is an example of opportunity cost?

• A) Renting an apartment near school
• B) Saving money instead of taking a vacation
• C) Organizing income tax records
• D) Purchasing automobile insurance
• E) Using a personal computer for financial planning

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Definitions:

Profit

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Mechanistic Organization

A highly structured, rigid, and bureaucratic form of organization based on centralized authority and a hierarchical line of command.

Leadership Role

A position of influence and responsibility where an individual guides and directs a group towards achieving a common goal.

Managers

Individuals in an organization responsible for making decisions, overseeing projects, and leading teams towards achieving objectives.