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

question 22

Multiple Choice

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?

• A) $7,000
• B) $10,000
• C) $2,000
• D) $200,000

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Definitions:

Auditory Sensations

The experiences or perceptions of sound by the ear and interpreted by the brain.

Temporal Lobes

Regions of the brain involved in processing auditory information and encoding memory.

Cerebrum

The largest part of the brain, responsible for higher brain functions such as thought, action, and emotion.

Synaptic Transmission

The process by which signals are passed between neurons through the synapse, involving the release of neurotransmitters.