Scenario 13-1 Joe Wants to Start His Own Business,which Will Require That

question 141

Multiple Choice

Scenario 13-1
Joe wants to start his own business,which will require that he purchase a factory that costs $400,000.Joe currently has $500,000 in the bank earning 3 percent interest per year.
-Refer to Scenario 13-1.Suppose Joe purchases the factory using $200,000 of his own money and $200,000 borrowed from a bank at an interest rate of 6 percent.What is Joe's annual opportunity cost of purchasing the factory?

• A) $3,000
• B) $6,000
• C) $15,000
• D) $18,000

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Definitions:

Temperament

The combination of inherent traits, personality, and behaviors that determine an individual's typical responses to the environment.

Impoverished Environments

Settings that lack the stimuli, resources, and opportunities necessary for physical, cognitive, emotional, and social development.

Educational Experiences

The range of interactions, learning opportunities, and academic growth that one encounters through formal and informal educational settings.

Activated Connections

Refers to the engagement or stimulation of neural pathways in the brain during learning or memory recall.