Steven Lives in a Big City Where There Is a Shortage

question 132

Multiple Choice

Steven lives in a big city where there is a shortage of parking. He has a parking spot in his driveway where he parks his car. Which of the following statements is most correct?

• A) Steven has a lower opportunity cost of owning a car than his neighbor, who must rent a parking spot.
• B) The opportunity cost of using the spot is zero, because Steven owns the house.
• C) The opportunity cost of using the parking spot is the price he could charge someone else for using the spot.
• D) The opportunity cost depends on how much Steven's mortgage payment is.

Evaluate different intelligence tests and their attempts to measure intellectual capabilities fairly across cultures.

Distinguish between different types of intelligence such as analytical, creative, and practical intelligence.

Understand the relationship between genetics and intelligence.

Identify factors affecting cognitive processing and language development.

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Definitions:

Accounting Equation

The fundamental equation of accounting stating that Assets = Liabilities + Shareholder's Equity, underpinning the double-entry bookkeeping system.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary accounts' balances to permanent ones, thereby resetting the temporary accounts for the next period.

Permanent Accounts

The balance sheet accounts whose balances are carried over into future accounting periods, not closed at the end of the fiscal year.

Posting

The process of recording financial transactions to the appropriate accounts in the general ledger.