Andrew Decides to Open a Laboratory in His Basement

question 162

Multiple Choice

Andrew decides to open a laboratory in his basement. He quits his job, sacrificing $30,000 a year; cashes in $200,000 of Canada Savings Bonds that were paying him an interest rate of 5 percent per year; and evicts a tenant who was paying $10,000 a year in rent to live in the basement. The opportunity cost of Andrew's decision is

• A) $40,000.
• B) $50,000.
• C) $0.
• D) $30,000.
• E) $240,000.

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Definitions:

Positive Emotions

feelings that are enjoyable and desirable, such as happiness, love, or excitement, contributing to overall well-being.

Valenced Reactions

Emotional responses that can be positive or negative in nature, influenced by an individual's personal experiences, perceptions, or attitudes towards a particular event or piece of information.

Arousal

is a physiological and psychological state of being awoken or activated, as well as the readiness for activity.

Moods

are temporary emotional states that differ from emotions by being less specific, less intense, and longer-lasting, influencing a person's perception and behaviors.