The opportunity cost of the financial resources used to finance the purchase of capital is
A) the real interest rate.
B) the supply of investment.
C) capital investment.
D) the quantity of investment demanded.
E) the price of the capital goods purchased.

Question

Quizplus · Accepted Answer

The opportunity cost of using financial resources to purchase capital is the real interest rate, as it represents the return that could have been earned if those resources were invested elsewhere.

The Opportunity Cost of the Financial Resources Used to Finance