Alana Decides to Spend 2 Hours Working Overtime Rather Than

question 166

Multiple Choice

Alana decides to spend 2 hours working overtime rather than going shopping with her friends. She earns $11 per hour for overtime work. Her opportunity cost of working is

• A)the $22 she earns working.
• B)the $22 minus the enjoyment she would have received from going shopping.
• C)the enjoyment she would have received had she gone shopping.
• D)nothing, since she would have received less than $22 worth of enjoyment from going shopping.

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Definitions:

Life Tenant

An individual who has the right to use or occupy property during their lifetime, but cannot sell or transfer the property.

Fee Simple

The most extensive interest in real estate available, granting the owner full possession and control, subject only to governmental restrictions.

Easement

A non-possessory right to use or enter onto another's property for a specified purpose, without owning it.

Co-Ownership

Co-Ownership is the joint ownership of property or assets by two or more parties, where each party holds an interest or stake in the shared ownership.