John Is Trying to Decide How to Divide His Time

question 88

Multiple Choice

John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the accompanying table.  
What is John's opportunity cost of cleaning windows for an hour?

• A)$14
• B)$8
• C)$7
• D)$2

Identify and comprehend different types of definitions (persuasive, precising, stipulative, lexical, operational) and their roles in effective communication and critical thinking.

Recognize barriers to effective communication, including nonverbal cues, use of ambiguous words, and cultural differences.

Appreciate the multifunctional nature of language, including its role in formal ceremonies, expression of emotions, and manipulation by power structures.

Distinguish between rhetorical devices and their uses in communication.

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Definitions:

Law Of One Price

The rule stipulating that equivalent securities or bundles of securities must sell at equal prices to preclude arbitrage opportunities.

Relative Strength

The extent to which a security has outperformed or underperformed either the market as a whole or its particular industry.

Outperformed

Describes when an investment or fund earns a return that exceeds the performance of its benchmark or peer group.

Underperformed

Refers to an investment yielding a lower return than other investments or benchmarks.