Figure 1- 2 with a Budget of $500 000,a School

question 74

Multiple Choice

Figure 1- 2 With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination) for use in classrooms.

-Suppose Andrea has a job that pays her $25 000 per year (after taxes) .She is considering quitting her job and going to university full time for four years.Tuition fees and books will cost $12 000 per year.Living expenses in either situation will cost $10 000 per year.What is the opportunity cost of Andrea's four- year university degree?

• A)$188 000
• B)$100 000
• C)$120 000
• D)$88 000
• E)$148 000

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Definitions:

Market Efficiency

An economic theory that posits that it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information.

Security Prices

The current market price or value of a financial security, such as stocks and bonds, determined by supply and demand.

Excess Returns

The return on an investment that exceeds the benchmark or risk-free return, reflecting the additional risk taken by the investor.

Small-company Stocks

Equity investments in companies with smaller market capitalization, often characterized by higher volatility and growth potential compared to large-cap stocks.