You're Trying to Determine Whether to Spend Your Saturday Afternoon

question 113

Multiple Choice

You're trying to determine whether to spend your Saturday afternoon attending a street festival, working to earn $100, or studying for your midterm exam. You really don't want to work, so you flip a coin between attending the street festival and studying. The coin flip determines that you should stay home and study. The opportunity cost of your time spent studying includes:

• A) the loss of $100 worth of wages and the joy from going to the street festival.
• B) earning a high score on your midterm and thus improving your grade in the class.
• C) the benefit that you could have received from attending the street festival.
• D) the time you spent deciding and using a coin flip to determine your Saturday afternoon activity.

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Definitions:

Risk of Loss

A legal term referring to the responsibility for damage, destruction, or loss of goods, especially in the context of the sale or transport of those goods.

Hijacked

When something is hijacked, it is taken control of forcefully or unlawfully, often referring to vehicles like planes or trucks, but also can describe situations where control is usurped illegally or unethically.

CISG

The United Nations Convention on Contracts for the International Sale of Goods is a treaty designed to provide a standardized framework for international trade.

Written Contract

A legally binding agreement between two or more parties that is put in written form and signed by those involved, specifying the terms and conditions of their arrangement.