Suppose a Famous Baseball Player, Alex Rodriguez, Hires a High

question 167

Multiple Choice

Suppose a famous baseball player, Alex Rodriguez, hires a high school student to paint his house. Which of the following is most likely TRUE?

• A) The opportunity cost of painting a house is higher for Alex Rodriguez than for the high school student.
• B) The opportunity cost of painting a house is lower for Alex Rodriguez than for the high school student.
• C) The opportunity cost of painting a house is the same for Alex Rodriguez as for the high school student.
• D) The opportunity cost of painting a house is zero for Alex Rodriguez and is negative for the high school student.

---

Definitions:

Accounts Listed

Refers to the organized list of all accounts used in a company's accounting system, which can include assets, liabilities, equity, revenues, and expenses.

Sales Returns

Goods returned by the buyer to the seller, leading to a reduction in the seller's revenue.

Contra-Revenue Account

An account that is used to record deductions from gross revenue, resulting in net revenue.