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:

Measure Of Activity

A metric used to quantify the level of production or the volume of operations in a business.

Horizontal Analysis

A side-by-side comparison of two or more years’ financial statements.

Vertical Analysis

The presentation of a company’s financial statements in common-size form.

Total Asset Turnover

Total asset turnover is a financial ratio that measures a company's efficiency in using its assets to generate sales revenue.