You Have Chosen to Take a Trip During Spring Break

question 335

Multiple Choice

You have chosen to take a trip during spring break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

• A) the wages you would have earned from working.
• B) the lower grade earned by not studying.
• C) the wages you would have earned from working and the lower grade earned by not studying.
• D) the value of the trip.
• E) We cannot determine what the opportunity cost is without knowing which alternative, working or studying, you would have preferred.

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Definitions:

Mutual Fund

An investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

Joint Probability

The probability of two or more events happening at the same time.

Equity Loan

A type of loan in which the borrower uses the equity of their home as collateral.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.