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Andrew Invested $200,000 in the Shares of a Company

question 22

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Andrew invested $200,000 in the shares of a company.At the end of a year,he had earned $7,000 as dividends on his shares along with a $1,000 appreciation in the overall value of his shares.However,if Andrew had invested the same amount on an asset,like gold,the appreciation in its value would have earned him $10,000 at the end of the year.In this scenario,which of the following is Andrew's opportunity cost?


Definitions:

Urban Communities

Populated areas within cities or towns where individuals live in close proximity to one another, often characterized by higher density of buildings and services.

Rural Communities

Rural communities refer to areas that are located outside cities and towns, typically characterized by smaller populations, lower density, and often a dependency on agricultural activities.

Subordinate

A person who is lower in rank or position, often subjected to the authority or control of another within an organization or hierarchy.

Massive Waves

Large and powerful ocean waves often resulting from underwater earthquakes, landslides, or other disturbances.

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