Which of the following behaviors is considered an economic cost of stress?

• A. Reduced worker productivity leading to lower output
• B. Improved allocation of resources in the economy
• C. Increased consumer demand for luxury goods
• D. Greater market competition among firms

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of economic cost. Economic cost includes both explicit costs (direct monetary payments) and implicit costs (opportunity costs, including lost productivity or output).
2. Step 2: Analyze each option to see if it represents a cost that affects economic output or resource allocation negatively.
3. Step 3: Recognize that 'Reduced worker productivity leading to lower output' directly implies a loss in economic output, which is an implicit economic cost.
4. Step 4: Note that 'Improved allocation of resources in the economy' is a positive effect, not a cost.
5. Step 5: Understand that 'Increased consumer demand for luxury goods' and 'Greater market competition among firms' are market phenomena but do not represent costs caused by stress.