The Principle of Opportunity Cost Is That

question 10

Multiple Choice

The principle of opportunity cost is that

• A)in a market economy, taking advantage of profitable opportunities involves some money cost.
• B)the economic cost of using a factor of production is the alternative use of that factor that is given up.
• C)taking advantage of investment opportunities involves costs.
• D)the cost of production varies depending on the opportunity for technological application.

---

Definitions:

Compliance Technique

Methods or strategies used to persuade someone to agree to a request or follow a command. These often involve psychological principles to influence behavior.

Lowball

A sales strategy where an item or service is initially offered at a lower than usual price to attract customers, who are then informed of additional costs or conditions that increase the overall price.

Milgram Studies

A series of psychological experiments conducted by Stanley Milgram in the 1960s to measure individuals' willingness to obey authority figures, even when instructed to perform actions conflicting with their personal conscience.

Legitimacy

The general belief that a rule, institution, or leader has the right to govern or command.