Refer to Scenario 5.2. Which of the following is true?
A) Randy has a higher expected expense than Samantha for the car.
B) Randy has a lower expected expense than Samantha for the car.
C) Randy and Samantha have the same expected expense for the car, and it is somewhat less than $20,000.
D) Randy and Samantha have the same expected expense for the car: $20,000.
E) It is not possible to calculate the expected expense for the car until the true probabilities are known.
A
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You purchase a pizza oven that is expected to last 10 years for $15,000. How do you account for the economic cost of the oven?
A) Expense the oven, taking a write-off for the entire price in the first year. B) Amortize the cost over the 10 year life of the oven, resulting in a cost of $1,500 per year. C) Calculate the value of renting the oven to someone else and use that as your cost. D) The cost is the price of the oven minus any revenue made selling pizzas made in the oven.
An office worker who loses her job because she does not have the necessary computer skills is, ceteris paribus:
A. Frictionally unemployed. B. Seasonally unemployed. C. Cyclically unemployed. D. Structurally unemployed.