Even Though Mass Transit Systems Such as Buses Are Available

question 250

Multiple Choice

Even though mass transit systems such as buses are available in most cities in the United States, many residents decide to drive to work in their own vehicles because

• A) the opportunity cost of riding a bus is too high for them.
• B) there is no opportunity cost of them to drive.
• C) they are not rational.
• D) they do not behave according to the economic way of thinking.

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Definitions:

Equity

Equity represents the ownership value held in an asset or a business by its shareholders or owners, calculated as the difference between the value of the assets and the value of the liabilities.

Net Income

The total earnings of a company after subtracting all expenses, including taxes, from its total revenues.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Acquiring And Disposing

The processes involved in obtaining and getting rid of assets, including purchasing or receiving assets and selling or disposing of them.