Hamid Spends an Hour Studying Instead of Watching TV with His

question 24

Multiple Choice

Hamid spends an hour studying instead of watching TV with his friends.The opportunity cost to him of studying is

• A)the improvement in his grades from studying for the hour.
• B)the improvement in his grades from studying minus the enjoyment of watching TV.
• C)the enjoyment he would have received if he had watched TV with his friends.
• D)zero.Since Hamid chose to study rather than to watch TV,the value of studying must have been greater to him than the value of watching TV.

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Definitions:

Investing

The practice of assigning funds with the aim of producing income or profit.

Monthly

Occurring every month or once a month.

Compounded Quarterly

A process of calculating interest where the interest earned is added to the principal at the end of every three months, leading to an increase in the amount on which subsequent interest is calculated.

Semi-Annually

Occurring twice a year; typically refers to payments or adjustments made every six months.