If Jessie Studies Economics for Two Hours Instead of Going

question 38

Multiple Choice

If Jessie studies economics for two hours instead of going to the movies with her friends,then

• A) the benefit of studying is the missed movie.
• B) the opportunity cost of studying is the missed movie.
• C) Jesse definitely is making a rational choice.
• D) Jessie is ignoring a sunk cost.
• E) Jessie is not responding to any incentives.

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Definitions:

Plant Assets

Tangible resources that are used in the operations of the business and are not intended for sale to customers.

Disposal Of A Segment

The process of eliminating a division or part of a business, which may involve selling, closing, or spinning off.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, providing insight into business operations and profitability.

Accounting Principle

Fundamental guidelines or rules that govern the process of accounting and financial reporting, ensuring consistency and comparability of financial data.