The opportunity cost of producing capital is

A) decreased current production of consumption goods

B) increased future production of consumption goods

C) the amount of roundabout production

D) abundant capital accumulation

E) the decreased amount of future capital available

Question

Business

Monica Short

21 July, 08:50

The opportunity cost of producing capital is

A) decreased current production of consumption goods

B) increased future production of consumption goods

C) the amount of roundabout production

D) abundant capital accumulation

E) the decreased amount of future capital available

+1

Answers (1)

Know the Answer?

Ethan Leonard · Answer 1

A) decreased current production of consumption goods.

Explanation:

Opportunity cost is the economic cost that is not part of books of accounts. It is the cost of sacrificing one alternative for choosing another one. It is always calculated in terms of money, sometimes time, skill, etc are also referred to as opportunity costs. If one wants to produce capital then he has to give up the current production of consumption goods.

The opportunity cost of producing capital isA) decreased current production of consumption goodsB) increased future production of consumption goodsC) the amount of roundabout productionD) abundant capital accumulationE) the decreased amount of future capital available

The opportunity cost of producing capital is

A) decreased current production of consumption goods

B) increased future production of consumption goods

C) the amount of roundabout production

D) abundant capital accumulation

E) the decreased amount of future capital available