Question

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

Answer 1

A) decreased current production of consumption goods.

Step-by-step 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.