You Own a Building That Has Four Possible Uses: an Internet

question 17

Multiple Choice

You own a building that has four possible uses: an Internet cafe,a coffee store,an ice cream store,and a bookstore.The value of the building in each use is $2,000; $3,000; $4,000; and $5,000,respectively.You decide to open an ice cream store.The opportunity cost of using this building for an ice cream store is

• A) $2,000, the value if the building is used as an Internet cafe.
• B) $3,000, the value if the building is used as a coffee store.
• C) $3,333, the average of the values if the building is used for either an Internet cafe, a coffee store, or a bookstore.
• D) $5,000, the value if the building is used for a bookstore.

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Definitions:

Practical Intelligence

Refers to the ability to solve everyday problems by utilizing knowledge gained from experience in order to effectively deal with new and unfamiliar situations.

Sternberg's Triarchic Theory

A theory of intelligence proposing that human intelligence comprises three aspects: analytical, creative, and practical.

Real-World Demands

Refers to the practical requirements or pressures imposed by everyday life outside of a controlled environment.

Experiential Intelligence

A component of Robert Sternberg's triarchic theory of intelligence, focusing on the ability to apply past experiences and learning in practical, everyday situations.