Suppose You Take a Trip During Spring Break

question 28

Multiple Choice

Suppose you take a trip during Spring Break.To determine the benefit of taking the trip,you

• A) calculate the opportunity cost of the trip.
• B) measure what you are willing to give up to take the trip.
• C) determine the sunk cost of taking the trip.
• D) calculate the value of the next best alternative foregone.
• E) must measure what the trip is worth to you and then subtract the cost of the trip.

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Definitions:

Teletype Machines

Early communication devices used to send typed messages over long distances through telecommunication lines.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price, often used by investors to gauge the income a company's stock will generate.

Dividend

A portion of a company's earnings that is distributed to shareholders, usually as cash or additional shares, as a reward for their investment in the company's equity.