1.5 Business Choices Flashcards

1
Q

Put simply what is an opportunity cost:

A

What you can no longer do because you went with a different option.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the proper definition of an opportunity cost?

A

The cost of the next best alternative forgone when making a decision.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a trade off?

A

A compromise:
By a firm having more of one thing they have less of another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is an example of an opportunity cost?

A

By a business buying 2 tractors the opportunity cost is another project they can no longer do.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is an example of a trade off

A

If a company wants to be ethical they will likely have higher costs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly