The opportunity cost of capital investment is _______.

sacrifice of current consumption

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more consumption on luxury items

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lower capital growth in future

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wastage of resources

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Solution

The correct option is A sacrifice of current consumption
When you receive your income it is generally split in two. The two parts are the consumption and saving. In a closed economy, the savings become the investment. That, is saving is equal to investment. There the next best alternative of investment would be to not invest. That is, to not save, therefore you consume your income.

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