Because Resources Are Scarce, the Opportunity Cost of Investment in Capital

question 73

Multiple Choice

Because resources are scarce, the opportunity cost of investment in capital is

• A) zero.
• B) forgone future consumption.
• C) forgone present consumption.
• D) infinite.

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Definitions:

Federal Budget Deficit

The financial situation where the federal government's expenditures exceed its revenues in a given fiscal year.

National Debt

The total amount of money that a country's government has borrowed by various means.

Fiscal Policy

Government policies concerning taxation and spending that are aimed at influencing economic conditions, including promoting economic growth, controlling inflation, and reducing unemployment.

Government Deficit

Occurs when a government's expenditures exceed its revenues during a specific period, leading to borrowing or drawing from reserves.