Post Utme Noun 2022 Economics Question 24

Practice objective / multiple choice question 24 from the 2022 Post Utme Noun Economics examination.

Post Utme Noun 2022 Economics Objective / Multiple Choice
Question 24 POST_UTME_NOUN • 2022 • ECONOMICS • objective

A firm is considering investing in a new project that has a high expected return, but also a high level of risk. What is the opportunity \cost of investing in this project?

Answer Options

A. The opportunity \cost is the value of the next best alternative foregone.
B. The opportunity \cost is the value of the next best alternative foregone, in terms of the expected return.
C. The opportunity \cost is the value of the next best alternative foregone, in terms of the risk.
Correct Answer D. The opportunity \cost is the value of the next best alternative foregone, in terms of the expected return and the risk.
Correct Answer
D
Correct Option:
The opportunity \cost is the value of the next best alternative foregone, in terms of the expected return and the risk.

About This Question

This is Post Utme Noun 2022 Economics Question 24. It is one of the objective questions from the 2022 Post Utme Noun Economics examination.

View More Post Utme Noun 2022 Economics Questions More Post Utme Noun Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support