Ali Decides to Attend the One-Hour Review Session for Microeconomics

question 39

Multiple Choice

Ali decides to attend the one-hour review session for microeconomics instead of working at his job. His job pays him $10 per hour. Ali's opportunity cost of attending the review session is

• A) the one-hour review session.
• B) equal to the benefit he gets from the review session.
• C) the $10 he could have earned at his job.
• D) the value of the session minus the $10 he could have earned at his job.
• E) nothing, because the review session does not cost anything.

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Definitions:

Tax Expense

Tax Expense is the total amount of taxes owed by an individual or corporation to the federal, state, and local government, reflecting in the financial statements of the period in which the tax is accrued.

Premium Amortization

The systematic reduction of a premium paid above the par value of a bond, allocated over the bond's life until maturity.

Bond Amortization Schedule

A schedule that details the reduction of a bond's principal amount over time, often including payments of both principal and interest.

Unamortized Premium

The portion of a bond premium that has not yet been amortized or gradually written off over time.