Suppose That You Own a House

question 93

Multiple Choice

Suppose that you own a house. What is the opportunity cost of living in the house?

• A) There is no opportunity cost because you own the house.
• B) There is no opportunity cost unless you could set up a business in the house.
• C) The opportunity cost is the rent you could have received from a tenant if you didn't live there.
• D) The opportunity cost is the cost of your monthly mortgage payment plus bills.

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Definitions:

Personal Autonomy

The capacity to make an informed, uncoerced decision about one's own actions and life direction.

Informal Communication

A type of communication that occurs outside official channels without formal procedures or structure.

Systems/Contingency

A theory in organizational behavior that posits the effectiveness of a management approach is contingent upon the internal and external environment.

Virtual Organization

A business model that operates online, often without a traditional physical presence, relying heavily on information and communication technologies.