An Opportunity Cost Is ________

question 56

Multiple Choice

An opportunity cost is ________.

• A) the additional costs generated by a proposed alternative
• B) the difference in total cost between two alternatives
• C) a cash disbursement in the future
• D) the maximum available benefit foregone by using a resource for a particular purpose instead of the best alternative use

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Definitions:

Nominal Wages

See Money Wages.

Economic Rent

The surplus income received by a factor of production (land, labor, or capital) due to its limited supply, over and above its opportunity cost.

Pro Tennis Tour

A circuit of internationally recognized tennis tournaments in which professional tennis players compete for titles and prize money.

Labor Supply Curve

Depicts the relationship between the wage rate and the quantity of labor workers are willing to supply; generally upward sloping, indicating more labor supplied as wages increase.