If Michelle Used $1000 from Her Savings Account, Which Was

question 71

Multiple Choice

If Michelle used $1000 from her savings account, which was paying 6 percent interest annually, to invest in her brother's new sporting- goods store, the opportunity cost of her investment on an annual basis would be

• A) her share of the store's profits.
• B) $60.
• C) $1060.
• D) $1000.
• E) the dividend paid to her by her brother.

---

Definitions:

Utility Function

A mathematical representation of a consumer's preference ranking over a set of goods or services, indicating satisfaction levels.

Units Of X

A generic term for measuring quantities of a variable or unspecified item, labeled as 'X'.

Exchanges Of X For Y

Transactions or trades where one good, service, or asset (X) is traded for another (Y).

Utility Function

An economic term describing how consumers rank different bundles of goods or levels of happiness.