In the 1985 Mexico Earthquake Buildings with 10-20 Storeys Literally

question 37

Multiple Choice

In the 1985 Mexico earthquake buildings with 10-20 storeys literally tore themselves apart because

• A) they were badly constructed.
• B) they were not finished.
• C) the rocks beneath them were hard.
• D) they had the same natural frequency as the materials on which they were built.
• E) the earthquake occurred right under the city.

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Definitions:

Opportunity Cost

The cost of forfeiting the next best alternative when making a decision or investment.

Next Best Use

An economic concept referring to the most profitable or valuable alternative use of a resource if it is not used in its current manner.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, usually large corporations.

Present Value

The current value of a future sum of money or stream of cash flow given a specified rate of return.