Suppose the Best Investment You Could Make with $100,000 in Cash

question 302

Multiple Choice

Suppose the best investment you could make with $100,000 in cash is to purchase a government bond that pays 14 percent interest per year. If you decide to invest the money in your own business instead of buying the government bond, the opportunity cost of this financial capital is

• A) $1,400 per year.
• B) $100,000 per year.
• C) $14,000 per year.
• D) zero, because you already had the $100,000.

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Definitions:

Conditional Operator

A ternary operator that provides a shorthand way to write if-else statements, evaluating a condition and returning one of two values.

Conditional Expression

A conditional expression, often using the ternary operator ?:, evaluates to one of two values depending on the truth value of a specified condition.

Ternary Operator

The ternary operator in programming is a conditional operator that simplifies the if-else statement into a single line of code, typically used in the format condition ? expression1 : expression2.

Unconditional Transfer

In computer science, refers to instructions or statements that cause the program to continue execution from a different address or line without any condition.