Meridith Had Only $16 to Spend This Last Weekend

question 74

Multiple Choice

Meridith had only $16 to spend this last weekend.She was,at first,uncertain about whether to go to two movies she had been wishing to see or to buy a new CD she had recently heard.In the end she went to the movies.Which of the following statements is correct?

• A)The choice of the two movies and not the CD is an example of increasing costs.
• B)The opportunity cost of the two movies is one CD.
• C)The opportunity cost of the two movies is $16.
• D)The choice of two movies rather than one CD was a bad one.

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Definitions:

Revenues

The total amount of money received or accrued by a business from its normal business operations.

Net Loss

A situation where total expenses exceed total revenues in a specific period, indicating a reduction in equity.

Assets

Resources owned or controlled by a company, which are expected to provide future economic benefits.

Liabilities

financial obligations or debts that a business needs to settle in the future, such as loans, accounts payable, and mortgages.