Chris Has a One-Hour Break Between Classes Every Wednesday

question 42

Multiple Choice

Chris has a one-hour break between classes every Wednesday. Chris can either stay at the library and study or go to the gym and work out. The decision Chris must make is:

• A)not an economic problem because neither activity costs money.
• B)not an economic problem because it's an hour that Chris has no matter what he does.
• C)an economic problem because the tuition Chris pays covers the cost of both the gym and the library.
• D)an economic problem because Chris has only one hour, and engaging in one activity means giving up the other.

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Definitions:

Cash Dividend

A disbursement issued to shareholders from a firm's profits, often in cash format.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders’ equity at a specific point in time, providing a snapshot of the firm's financial condition.

Direct Method

A technique used in cash flow statements to show actual cash inflows and outflows from operating activities, as opposed to the indirect method.

Accounts Receivable

The funds that a company's customers have yet to pay for products or services they have received but have not settled the bill for.