By Choosing to Go into Business for Himself,Jim Lazar Foregoes

question 20

Multiple Choice

By choosing to go into business for himself,Jim Lazar foregoes the possibility of getting a highly paid job with a large company.This is called a(n) :

• A)Sunk cost.
• B)Out-of-pocket cost.
• C)Opportunity cost.
• D)Joint cost.

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Definitions:

Parity Ratio

A measure comparing the value of one set of goods, services, or incomes to another set, often used in agriculture, trade, or economics for comparative analysis.

Farmers

Individuals or entities involved in the practice of agriculture, raising living organisms for food or raw materials.

Farm Subsidies

Government payments or other support extended to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Parity Concept

The idea that year after year the sale of a specific output of a farm product should enable a farmer to purchase a constant amount of nonagricultural goods and services.