Moe Has a Big Exam Tomorrow

question 47

Multiple Choice

Moe has a big exam tomorrow. He considered studying this evening, but decided to hang out with Curly instead. If neither activity involves any explicit costs, and Moe always chooses rationally, then it must be true that:

• A) the opportunity cost of studying is greater than the value Moe gets from spending time with Curly.
• B) the opportunity cost of studying is less than the value Moe gets from spending time with Curly.
• C) Moe gets more benefit from spending time with Curly than from studying.
• D) Moe gets less benefit from spending time with Curly than from studying.

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Definitions:

Budgeted Beginning Inventory

The estimated value or quantity of inventory that a company plans to have on hand at the start of a period.