Suppose You Had $1,000 to Spend

question 117

Multiple Choice

Suppose you had $1,000 to spend.You choose to spend the money on new clothes rather than on a new surfboard,your second choice or 1,000 lottery tickets,your third choice.

• A)Your opportunity cost of spending the money on clothes is the $1,000 spent.
• B)Your opportunity cost of spending the money on clothes is not buying the surfboard.
• C)Your opportunity cost of spending the money on clothes is not buying the surfboard and the lottery tickets.
• D)There is no opportunity cost in this instance.

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Definitions:

Dependent Variable

In an experimental study, it is the variable being tested and measured, expected to change as a result of manipulations to the independent variable.

Independent Variable

A variable in an experiment that is manipulated or changed by the researcher to study its effects on the dependent variable.

Extraneous Variable

A variable that is not of interest in a study but may affect the outcome of the experiment if not controlled.

Control Group

In research, a control group is a group of subjects not exposed to the experimental treatment, used as a benchmark to measure the effect of the treatment.