Question

opportunity cost refers to -current interest rates -the amount paid for taxes when a purchase is...

opportunity cost refers to
-current interest rates
-the amount paid for taxes when a purchase is made
-money needed for major consumer purchases
-what a person gives up by making a choice
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Opportunity cost refers to

-what a person gives up by making a choice

Explanation:

Opportunity cost refers to a benefit that a person could have received, but gave up, to take another course of action. Stated differently, an opportunity cost represents an alternative given up when a decision is made.

The term opportunity cost is often used in finance and economics when trying to choose one investment, either financial or capital, over another. It is a measure of any economic choice as compared to the next best one.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What differentiates a sunk cost from a relevant cost? a. A sunk cost occurred in the...
What differentiates a sunk cost from a relevant cost? a. A sunk cost occurred in the past and doesn’t affect decision making. A relevant cost differs between alternatives and is used in decision making. b. A relevant cost occurred in the past and doesn’t affect decision making. A sunk cost differs between alternatives and is used in decision making. c. Both costs are used is decision making. d. Neither cost is used in decision making. What is true of opportunity...
Which of the following statements is true? a. Due to payment risk, the interest rates at...
Which of the following statements is true? a. Due to payment risk, the interest rates at the beginning of a fixed rate mortgage and adjustable rate mortgage of the same term are the same. b. The monthly payment on a 15 year fixed rate mortgage equals exactly two times the monthly payment on a 30 year fixed rate mortgage with the same interest rate. c. Both of the above statements are true. d. Neither of the above statements are true....
Q1. Calculating Interest Rates Assume the total cost of a college education will be $345,000 when...
Q1. Calculating Interest Rates Assume the total cost of a college education will be $345,000 when your child enters college in 18 years. You presently have $73,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education? Q2. Calculating the Number of Periods At 6.1 percent interest, how long does it take to double your money? To quadruple it?
A mortgage is a loan used to purchase a home. It is usually paid back over...
A mortgage is a loan used to purchase a home. It is usually paid back over a period of 15, 20, or 30 years. The interest rate is determined by the term of the loan (the length of time to pay back the loan) and the credit rating of the person borrowing the money. Once a person signs the documents to borrow money for a home, they are presented with an amortization table or schedule for the mortgage that shows...
Discussion about - Price is just one of the prime factors. Price obviously is a very...
Discussion about - Price is just one of the prime factors. Price obviously is a very important factor when it comes to product demand because it gives the consumer a second thought if the product is worth its price and also could make one think it is very efficient if not it will not be placed at such price. But the truth is that there other important economic factors that play a role in such decision making there are employment,...
[9] An opportunity cost: A) exists only for decisions involving expenditures of money. B) exists because...
[9] An opportunity cost: A) exists only for decisions involving expenditures of money. B) exists because there is only one way money and time can be spent. C) is equal to the value of what is given up to make a purchase or take an action. D) accompanies every decision made by individuals and businesses, but not by government because that reflects the wishes of society. [10] The opportunity cost of a purchase is: A) zero if the item is...
Tom made a purchase on property 15 years ago. The current value of the property is...
Tom made a purchase on property 15 years ago. The current value of the property is $120,000. If the average inflation rate was 3% for the past 15 years, what was the value of the property when you purchased it? $77,023.43 $186,956.09 $174,000.00 $66,000.00 $120,000.00 Today, Molly deposited $3,000 in a disk with an interest rate of 4.65%. How much can Molly withdraw in 10 years? $3,000.00 $1,904.27 $4,726.22 $4,395.00 Today, John received tax return and realized that it would...
[1] The basic problem that gives rise to the study of economics is the need to:...
[1] The basic problem that gives rise to the study of economics is the need to: A) control the effects of actions by foreign governments. B) be sure all the goods and services produced in an economy get sold. C) use scarce resources to satisfy people's unlimited material wants and needs. D) control people's tastes and wishes so that the available resources can produce all the goods and services they want. [2] Economics is concerned with: A) earning as much...
On March 15, 2020, the U.S. Federal Reserve (the Fed) decided to further support the economy....
On March 15, 2020, the U.S. Federal Reserve (the Fed) decided to further support the economy. The Fed decided on expansionary monetary policy involving change interest rates (on savings and on loans). On March, 23, the Fed decided to purchase additional types of securities (in addition to the government securities that the Fed typically purchases when pursuing expansionary monetary policy). These additional purchases will put downward pressure on the interest rates on business loans and real estate loans (mortgages). The...
9. If a corporation declares dividends, preferred stockholders must receive them before: a.Bondholders are paid interest...
9. If a corporation declares dividends, preferred stockholders must receive them before: a.Bondholders are paid interest b. The government is paid taxes c.Common stockholders are paid dividends 10. An example of an annuity is which of the following: a.Receiving a commission payment that changes each pay period b. Receiving the same interest payment on a bond each year for ten years c.Receiving a one-time-only payment from selling a truck 11. A measure of the cost of raising equity capital from...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT