Let Us Suppose That If Oprah Winfrey Was Not a Superstar

question 4

Multiple Choice

Let us suppose that if Oprah Winfrey was not a superstar she would have been a judge making $100,000 per year. If she makes $63 million dollars this year, her opportunity cost is

• A) $63.0 million.
• B) $63.1 million.
• C) $100,000.
• D) $62.9 million.

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Definitions:

Capital Assets

Long-term assets acquired or owned by a business or individual for the purpose of generating income or investment.

Exchange Rates

The rate at which one currency can be exchanged for another, often influenced by market conditions and economic indicators.

Exchange Gain/Loss

A financial result that occurs when the value of foreign currency transactions changes due to fluctuations in exchange rates between the initial transaction and settlement dates.

Functional Currency

The primary currency of the primary economic environment in which an entity operates, used in its financial reporting.