You Like to Sleep Until 11:00 Am During the Semester

question 13

Multiple Choice

You like to sleep until 11:00 am during the semester. What is the opportunity cost of attending an 8:00 am class?

• A)nothing, since you can go back to bed later
• B)sleep
• C)obtaining the notes from the 8:00 am class
• D)the money you spend on coffee to stay awake

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Definitions:

Spot Price

The immediate market value at which certain assets, like commodities, currencies, or securities, are available for purchase or sale with instant delivery.

Liquidate

The process of converting assets into cash or equivalent by selling them, often used in the context of closing a business or paying off debts.

Profits

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Oil Future Contract

A legal agreement to buy or sell a specific amount of crude oil at a predetermined price at a specified time in the future.