What Would Be the Opportunity Cost of a Child Using

question 232

Multiple Choice

What would be the opportunity cost of a child using a coupon for a free ice cream cone?

• A)the dollar cost of the cone she selected 
• B)the other types of ice cream she could have selected 
• C)zero - because the good was not a durable good 
• D)zero - because the good was free

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Definitions:

Salvage Value

The projected sell-on value of an asset upon reaching the end of its operational lifespan.

Useful Life

The estimated duration of time over which an asset is expected to be functional and generate revenue for its owner.

Annual Expected Income

An estimate of the amount of money that is anticipated to be earned over a one-year period from various sources of income.

Salvage Value

An asset's forecasted value after its period of usability has concluded.