Suppose Amin Has a Job That Pays Him $87 000

question 1

Multiple Choice

Suppose Amin has a job that pays him $87 000 per year (after taxes) .He is considering taking an unpaid leave of absence from his job to complete a 12-month MBA program.Tuition is $75 000 and books and materials will cost $5000.Living expenses for the 12-month period will be cheaper by $500 per month,mostly due to lower apartment rental costs.What is the opportunity cost of Amin's 1-year MBA program?

• A)$75 000
• B)$76 000
• C)$161 000
• D)$167 000
• E)$175 000

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Definitions:

Nonunion Firms

Companies where the workforce is not represented by a labor union, which may affect wage levels, benefits, and working conditions.

Union Labor

refers to labor that is represented by a union, which negotiates wages, working conditions, and other employment terms on behalf of its members.

Wage Rate

The amount of money paid to an employee by an employer in exchange for work performed, typically expressed on an hourly, daily, or piecework basis.

Total Productivity

The ratio of total output (goods and services) produced to the total inputs used to obtain that output, measuring efficiency in production.