John Has Only One Hour to Study for an Exam

question 131

Multiple Choice

John has only one hour to study for an exam in history or to complete a written report in economics.The opportunity cost of spending the hour writing the economics report is

• A)a lower grade in the history exam.
• B)a higher grade in the history exam.
• C)a lower grade in both the history exam and the economics report.
• D)a higher grade in both the history exam and the economics report.
• E)none because history and economics are unrelated.

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Definitions:

Stock Traded

Shares of a company that are bought and sold on a stock exchange platform.

Shares

Shares represent the portion of ownership in a company or an investment that entitles the holder to a proportional claim on profits, which may be paid out as dividends if declared.

Unissued Stock

Shares that a company is authorized to issue according to its corporate charter but has not yet issued to shareholders.

Outstanding Bonds

Bonds issued by an entity that are currently not redeemed and are in the hands of investors, indicating debt that still needs to be paid off.