If You Own a Condo and You Decide to Lease

question 150

Multiple Choice

If you own a condo and you decide to lease it to your cousin,

• A) there is no opportunity cost of leasing the condo because you own it.
• B) there is an opportunity cost of leasing the condo because you could have chosen to live in it.
• C) there is no opportunity cost of leasing the condo because you collect rent from your cousin.
• D) the only cost relevant to this decision is the price you paid for the condo.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by an economy in a specific period accounting for changes in price level.

Trade Deficits

A situation where a country's imports of goods and services exceed its exports, resulting in a net outflow of domestic currency to foreign markets.

Real GDP

Gross Domestic Product adjusted for inflation, which reflects the value of all goods and services produced by an economy in a given year in base-year prices.

Price Level

The average price point of the entirety of goods and services in the economic scope.