The Principle of ________ Is That the Economic Cost of Using

question 195

Multiple Choice

The principle of ________ is that the economic cost of using a factor of production is the alternative use of that factor that is given up.

• A)marginal cost
• B)opportunity cost
• C)normative economics
• D)entrepreneurship

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Definitions:

Personal Liability

The legal responsibility of an individual to cover debt or damages arising from their actions.

Partnership

A business entity legally formed by two or more individuals who collaborate in managing the enterprise and sharing its financial gains.

Taxes

Compulsory financial charges levied by a government on individuals, businesses, or transactions to fund public expenditure.

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business, including liabilities.