Steven Lives in a Big City Where There Is a Shortage

question 22

Multiple Choice

Steven lives in a big city where there is a shortage of parking.He has a parking spot in his driveway where he parks his car.Which of the following statements is most correct?

• A) Steven has a lower opportunity cost of owning a car than does his neighbor, who must rent a parking spot.
• B) The opportunity cost of using the parking spot is zero, because Steven owns the house.
• C) The opportunity cost of using the parking spot is the price he could charge someone else for using the spot.
• D) The opportunity cost depends on how much Steven's mortgage payment is.

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Definitions:

Peak Experiences

Transcendent moments of pure joy and elation, which often feel as though they provide deep personal significance.

Self-Actualization Level

The realization or fulfillment of one's talents and potentialities, considered as the drive or need present in everyone.

Empathy

The capacity to comprehend and empathize with someone else's emotions as if you were in their position.

Individualism

A framework within society that esteems individual decision-making over control by state entities or collectives.