Because resources are scarce, the opportunity cost of investment in capital is
A) past investment.
B) past consumption.
C) foregone present consumption.
D) future consumption.

Question

Quizplus · Accepted Answer

The opportunity cost of investment in capital is the consumption that must be foregone in the present to allocate resources to investment. This reflects the basic economic principle that to invest resources (such as money, time, or materials) in capital goods (like machinery, tools, or buildings), one must give up the opportunity to use those resources for immediate consumption.

Because Resources Are Scarce, the Opportunity Cost of Investment in Capital