Suppose You Find R450

question 48

Multiple Choice

Suppose you find R450.If you choose to use the R450 to go to a rugby match, your opportunity cost of going to the game is

• A)nothing, because you found the money.
• B)R450 (because you could have used the R450 to buy other things) plus the value of your time spent at the game.
• C)R450 (because you could have used the R450 to buy other things) plus the value of your time spent at the game, plus the cost of the dinner you purchased at the game.
• D)R450 (because you could have used the R450 to buy other things).
• E)none of these answers.

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Definitions:

Transactions

The act of conducting business or commercial dealings, such as buying, selling, or exchanging goods, services, or financial instruments.

Profits

The surplus remaining after total costs are deducted from total revenue, and an indicator of the financial health and success of a business.

Hydraulic Fracturing

A technique used in the oil and gas industry to increase extraction rates by injecting fluid into subterranean rocks to create fractures.

Fracking

A process of injecting liquid at high pressure into subterranean rocks, boreholes, etc., to force open existing fissures and extract oil or gas.