The opportunity cost of any factor of production is
A) its accounting cost.
B) the benefit forgone by not using it in its worst alternative.
C) the money actually paid to the factors of production.
D) its explicit cost.
E) the benefit forgone by not using it in its best alternative.
Ans: E) the benefit forgone by not using it in its best alternative.
You might also like to view...
What might prompt a fresh college graduate to turn down the first job offer he or she receives?
A) They do not wish to begin working. B) They'd rather continue straight into graduate school. C) They expect a better job offer is right around the corner. D) All of the above.
Which of the following is an advantage of using money as a medium of exchange?
A) It simplifies purchases because all prices are specified in money values. B) There is no interest charged on using money for purchases. C) It is easy to mass produce money. D) It avoids having to rely on barter, the exchange of one good or service for another.