Mosti, a Materials Engineer, Has Discovered a Groundbreaking New Way

question 1

Multiple Choice

Mosti, a materials engineer, has discovered a groundbreaking new way to make recycled plastic stronger.He is looking to exploit this discovery by starting up his own business at a cost of $500 000.Unfortunately Mosti has only $200 000 in savings and must borrow the other $300 000.If the interest rate is 10%, then what, according to an economist, is the opportunity cost of starting up the business?

• A)$500,000 per annum
• B)$50,000 per annum
• C)$30,000 per annum
• D)$20,000 per annum

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Definitions:

Wrongful Acts

Actions or behaviors that are illegal or morally incorrect.

Employer

An individual or organization that hires and pays for the services of workers or employees.

Employee

An employee is an individual who has entered into or works under the terms of a contract of employment, whether implied or explicit, providing work or services in exchange for compensation.

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A contract in written form agreed upon between a union that represents workers and an employer, detailing the conditions of employment.