Suppose You Have Recently Graduated and Have Been Offered a Salary

question 34

Multiple Choice

Suppose you have recently graduated and have been offered a salary position at a reputable accounting firm of $125,000 (including all benefits) per year. After much consideration, you turn down the offer to start your own accounting firm. You pay yourself $75,000 (including all benefits) a year. Which of the following represents the implicit opportunity cost of your time?

• A)$125,000
• B)$50,000
• C)$75,000
• D)$100,000

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Definitions:

Middle Childhood

The developmental stage that typically encompasses children from ages 6 to 12, characterized by significant growth in social, cognitive, and emotional areas.

Cognitive Theory

A theory of human development that focuses on how people think. According to this theory, our thoughts shape our attitudes, beliefs, and behaviors.

Computer

An electronic device capable of processing and storing data, and performing tasks according to a set of instructions.

Knowledge Base

A body of knowledge in a particular area that makes it easier to master new information in that area.