What is the main function of the financial system?

Opportunity cost is best defined as the:

a. sum of all alternatives given up when a choice is made. b. money spent once a choice is made. c. highest-valued alternative given up when a choice is made. d. cost of a good minus the satisfaction obtained from consuming it. e. cost of capital resources used in the production of additional capital.

Country A has real GDP per person of 100,000 while country B has real GDP per person of 200,000 . All else constant, country A will eventually have a higher standard of living than country B if

a. the level of saving per person is 10,000 in country A and 10,000 in country B. b. the level of saving per person is 12,000 in country A and 15,000 in country B. c. Both of the above are correct. d. None of the above are correct.