The Process by Which Each Person Feels That What They

question 110

Multiple Choice

The process by which each person feels that what they give up is worth less than what they get is called

• A) opportunity cost.
• B) specialization.
• C) comparative advantage.
• D) absolute advantage.
• E) voluntary trade.

---

Definitions:

Offered by Firms

Describes the goods or services that companies make available to consumers in the marketplace.

Tuition

The fee that educational institutions charge for instruction and training, often paid per term or year.

Indirect Cost

Costs that are not directly accountable to a cost object (such as a particular project, facility, or product).

Direct Cost

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.