Suppose That You Have Received $300 as a Birthday Gift

question 54

Multiple Choice

Suppose that you have received $300 as a birthday gift.You can spend it today or you can put the money in a bank account for a year and earn 5 percent interest.The opportunity cost of spending the money today,in terms of what you could have after one year,is

• A)$0.
• B)$15.
• C)$305.
• D)$315.

Examine the reasons behind income inequality and its implications on national prosperity.

Understand the distinction between power and authority and the importance of moral consent.

Understand the common myths and realities of poverty.

Comprehend the causes and implications of income inequality.

---

Definitions:

Operating Expenses

The ongoing costs incurred in the operation of a business, excluding the cost of goods sold.

Periodic Inventory System

An inventory system where the inventory count is updated and cost of goods sold is calculated at specific intervals, not continuously.

Purchase Returns and Allowances

Concessions granted by sellers to buyers, involving the return of goods or issuance of allowances for unsatisfactory products or services.

Purchase Discounts

Reductions in the price of goods that a buyer is entitled to for early payment or volume purchases.