Scenario 13-2 Joe Wants to Start His Own Business.The Business He Wants

question 91

Multiple Choice

Scenario 13-2
Joe wants to start his own business.The business he wants to start will require that he purchase a factory that costs $500,000.To finance this purchase, he will use $200,000 of his own money, on which he has been earning 10 percent interest per year.In addition, he will borrow $300,000, and he will pay 12 percent interest per year on that loan.
-Refer to Scenario 13-2.For the first year of operation,what is the opportunity cost of purchasing the factory

• A)$10,000
• B)$20,000
• C)$34,000
• D)$56,000

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Definitions:

Cognitive Theory

A theory of psychology that emphasizes internal states, such as motivation, problem solving, decision-making, and thinking.

Psychodynamic Theory

Psychodynamic theory is an approach in psychology that emphasizes the influence of unconscious processes and childhood experiences on behavior.

Structuralism

An approach in psychology and sociology that involves understanding the structure of the human mind or society by analyzing the simplest, most significant components.

Psychoanalytic Psychologist

A professional in psychology who applies theories and techniques from psychoanalysis to understand and treat psychological issues, focusing on unconscious motives and childhood experiences.