Joe Sold Gold Coins for $1,000 That He Bought a Year

question 19

Multiple Choice

Joe sold gold coins for $1,000 that he bought a year ago for $1,000. He says, "At least I didn't lose any money on my financial investment." His economist friend points out that in effect he did lose money because he could have received a 3 percent return on the $1,000 if he had bought a bank certificate of deposit instead of the coins. The economist's analysis in this case incorporates the idea of

• A)opportunity costs.
• B)marginal benefits that exceed marginal costs.
• C)imperfect information.
• D)normative economics.

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Definitions:

Lag Indicator

A performance indicator that reflects the outcomes of actions previously taken, providing insight into historical performance.

Quality Inspection

The process of examining and testing products or services to ensure they meet the specified standards or criteria.

Customer Complaints

Customer Complaints are feedback or grievances expressed by customers regarding dissatisfaction with a product or service, important for quality control and improvement.

On-Time Delivery

The measure of a supply chain or vendor's ability to deliver goods or services to customers as scheduled.