Which of the Following Is Correct Concerning Opportunity Cost

question 68

Multiple Choice

Which of the following is correct concerning opportunity cost?

• A)Except to the extent that you pay more for them,opportunity costs should not include the cost of things you would have purchased anyway.
• B)To compute opportunity costs,you should subtract benefits from costs.
• C)Opportunity costs and the idea of trade-offs are not closely related.
• D)Rational people should compare various options without considering opportunity costs.

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Definitions:

Weber

A reference to Max Weber, a German sociologist and political economist whose theories on authority, bureaucracy, and social stratification have significantly influenced the field of sociology.

Davis and Moore

Sociologists who proposed a functionalist theory suggesting that social stratification has beneficial consequences for the operation of society.

Feudalism

A social system in medieval Europe where the nobility held lands from the Crown in exchange for military service, and vassals were in turn tenants of the nobles, while the peasants were obligated to live on their lord's land and give him homage, labor, and a share of the produce.

American Opinion

Refers to the collective attitudes or beliefs held by the American public on various topics and issues.