John Has Two Hours of Free Time This Evening

question 233

Multiple Choice

John has two hours of free time this evening.He ranked his alternatives,first go to a concert,second go to a movie,third study for an economics exam,and fourth answer his e-mail.What is the opportunity cost of attending the concert for John?

• A) attending a movie
• B) studying for an economics exam
• C) answering his e-mail
• D) attending a movie, studying for an economics exam, and answering his e-mail
• E) going to the concert because that is what John choose to do

---

Definitions:

Taxable Income

The portion of an individual's or company's income used as a base to calculate the amount of tax owed to the government.

Dependency Exemption

A tax exemption for taxpayers who support dependents who cannot fully support themselves.

Straight-Line Depreciation

A technique for distributing the expense of a physical asset evenly across its lifespan in yearly increments.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life to account for declines in value.