The Opportunity Cost of Every Investment in Capital Goods Is

question 5

Multiple Choice

The opportunity cost of every investment in capital goods is

• A) current consumption (consumer goods).
• B) future consumption (capital goods today).
• C) absolute advantage.
• D) comparative advantage.
• E) scarcity.

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Definitions:

Posting Reference

An identifier used in journals and ledgers to link transactions, facilitating tracking and cross-referencing between the two records.

Two-Column Journal

A financial journal that has a simple format with only a debit and a credit column for recording transactions.

Transactions

Transactions involve the exchange of goods, services, or funds between two or more parties, forming the basic activities recorded in accounting.

Interim Financial Statements

Financial reports that cover a period of less than one year, often used to provide a snapshot of a company's financial health to investors and stakeholders on a quarterly or semi-annual basis.