The Opportunity Cost of a Hot Dog in Terms of Hamburgers

question 159

Multiple Choice

The opportunity cost of a hot dog in terms of hamburgers is the

• A) ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers.
• B) ratio of the slope of the supply curve for hot dogs to the slope of the supply curve for hamburgers.
• C) money price of a hot dog minus the money price of a hamburger.
• D) ratio of the money price of a hot dog to the money price of a hamburger.

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Definitions:

Bond Issue

The process by which a government or corporation raises funds by issuing bonds to investors, which are debt securities establishing an obligation to pay back the principal along with interest by a specified date.

Semiannual Interest

Semiannual Interest refers to interest that is calculated and paid twice a year, commonly found in bonds and other types of loans.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which may not coincide with the calendar year.

Accrued Interest

The interest that has been incurred but not yet paid on a loan or bond.