Table 2-1 Shows Possible Exam Scores with Three Alternative Uses

question 41

Multiple Choice

Table 2-1 shows possible exam scores with three alternative uses of a student's time. The student has only a few hours to prepare for two different exams in one morning. The opportunity cost of scoring an 84 on the history exam rather than a 76 is a reduction of:Table 2-1

• A)10 points on the economics exam.
• B)7 points on the economics exam.
• C)8 points on the history exam.
• D)12 points on the economics exam.
• E)15 points on the history exam.

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Definitions:

Residual Value

The estimated salvage value of an asset at the end of its useful life, used in calculating depreciation.

Depreciation

The process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in their value over time.

Intangible Asset

An asset that lacks physical substance but is identifiable and provides economic benefits to the entity, such as patents, trademarks, and copyrights.

Fixed Asset

Long-term tangible property used in the operation of a business and not expected to be consumed or converted into cash in the near term.