Scenario 13-3 Kachina Is a Senior Majoring in Graphic Design at Awesome

question 631

Multiple Choice

Scenario 13-3
Kachina is a senior majoring in graphic design at Awesome University (AU) . While she has been attending college, Kachina started a computer consulting business to help senior citizens learn how to use their iPads. Kachina charges $25 per hour for her consulting services. She also works 5 hours a week for the Economics Department to maintain that department's Web page. The Economics Department pays Kachina $20 per hour.
-Refer to Scenario 13-3. If Kachina can work additional hours at either job, what is the opportunity cost if she spends one hour reading a novel?

• A)$20
• B)$25
• C)$100
• D)$125

---

Definitions:

Earnings Differential

The difference in wages or income between two groups due to various factors such as education, experience, or gender.

Marginal Productivity

The additional output that results from using one more unit of a factor of production, holding other factors constant.

Official Government Definition

A formal and authoritative explanation or description of a term or policy provided by a governmental body.

Biological Needs

Fundamental requirements that sustain the life of an organism, such as food, water, and shelter.