________ Is the Cost of a Foregone Alternative

question 34

Multiple Choice

________ is the cost of a foregone alternative.

• A)Opportunity cost
• B)Time value of money
• C)Inflation
• D)An annuity

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Definitions:

Demand

The desire and ability of consumers to purchase a good or service at a given price.

Tax

A required financial contribution or alternative type of tax placed on a taxpayer by a state authority to cover government outlays and assorted public spending.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits to retirees, the disabled, and children of deceased workers.

Labor Tax

Taxes levied on the wages and income generated from labor, which can affect employment and labor supply decisions in the economy.