Which of the following statements is true?

Question

Quizplus · Accepted Answer

An opportunity cost is defined as the value of the next best alternative that must be forgone in order to pursue a certain action. This is a fundamental concept in economics. The other options are either incomplete or incorrect. For example, the three fundamental economic questions are: What to produce? How to produce? For whom to produce? The term "investment" refers to the purchase of assets with the goal of generating income or appreciation, which may include stocks and bonds but also encompasses other types of assets such as real estate or commodities. The law of increasing opportunity cost states that as the production of one good increases, the opportunity cost of producing additional units of that good will increase, as resources that are well-suited for producing other goods must be diverted to produce more of the first good.

Which of the Following Statements Is True