What is the technical definition of opportunity cost?

The difference between a chosen action and other available options.

The total cost of using resources for production or investment.

The added cost of using resources compared to their actual value.

The cost of labor involved in economic decisions.

Which of the following is NOT an example of opportunity cost?

A farmer choosing to grow cucumbers instead of potatoes.

A business owner deciding to open a restaurant in a vacant space.

A student studying for an exam instead of going to a party.

In the production possibilities curve, what does point F represent?

Maximum production of both goods.

Under-utilization of resources.

Efficient allocation of resources.

A break-even point for a business.

What is normal profit in a competitive market?

Profit above the break-even point.

Total revenue exceeding total cost.

A profit that sustains a business in competition.

Which of the following best defines accounting profit?

Total revenue minus explicit costs.

Profit earned in a competitive market.

How does opportunity cost relate to the concept of risk?

Opportunity cost is unrelated to risk.

Opportunity cost represents the benefits of risk-taking.

Opportunity cost is another way to describe the relative risks of choices.

Opportunity cost eliminates risk in decision-making.

What does the production possibility curve illustrate?

The maximum profit a business can achieve.

The allocation of resources in a market.

The various combinations of two goods an economy can produce.

The total cost of production in a competitive market.

In a production possibilities curve, what does point A represent?

Maximum production of both goods.

Efficient allocation of resources.

Under-utilization of resources.

Minimum production of both goods.

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