Suppose That You Could Prepare Your Own Tax Return in 15

question 5

Multiple Choice

Suppose that you could prepare your own tax return in 15 hours,or you could hire a tax specialist to prepare it for you in 2 hours.You value your time at $11.00 an hour.The tax specialist will charge you $55 an hour.The opportunity cost of preparing your own tax return is:

• A) $40.
• B) $55.
• C) $110.
• D) $165.
• The use of your time to do the tax returns is 15*$11.00 = $165.00.This is your opportunity cost.

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Definitions:

Personal Jurisdiction

The legal authority of a court to involve a person in its proceedings, based on their connection to the court's location or involvement in the matter at hand.

U.S. Supreme Court

The highest federal court in the United States, which has ultimate appellate jurisdiction over all federal and state court cases that involve a point of constitutional or federal law.

Nonresident Defendant

A defendant in a legal action who does not reside in the jurisdiction where the lawsuit is filed.

Complaint

A formal statement initiating a lawsuit, alleging facts and legal reasons for action against the defendant.