Samia Has Decided That with the Two Hours in Between

question 22

Multiple Choice

Samia has decided that with the two hours in between classes she can do one of 3 things. She has ranked her choices, from highest to lowest as, (1) chat with her friends, (2) study economics or (3) take a nap. The opportunity cost of chatting with her friends is

• A) the combined value of studying economics and taking a nap.
• B) the value of studying economics, the next best use of time.
• C) the value of chatting with her friends.
• D) zero since she does not pay her friends to talk to her.

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Definitions:

Qualified Debtor

An individual or entity that meets specified criteria set by a lending institution to be eligible for borrowing or entering into debt agreements.

Repayment Schedule

A detailed plan outlining the timing and amounts for repaying a debt over a period.

Reorganization

In bankruptcy law, a plan created by a qualified debtor that alters his or her repayment schedule and allows the debtor to stay in business.

Involuntary Bankruptcy

A legal process initiated by creditors to force a debtor into bankruptcy proceedings, typically in order to recover debts that are not being paid.