In 1985, Alice paid $20,000 for an option to purchase ten acres of land. By paying the $20,000, she bought the right to buy the land for $100,000 in 1992. When she acquired the option in 1985, the land was worth $120,000
In 1992, it is worth $110,000. Should Alice exercise the option and pay $100,000 for the land? A) Yes.
B) No.
C) It depends on what the rate of inflation was between 1985 and 1992.
D) It depends on what the rate of interest was.
A
Economics
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The ability to produce a good or service at a lower opportunity cost than other producers is called
A) absolute advantage. B) comparative advantage. C) implicit advantage. D) marginal advantage.
Economics
You own $10,000 in personal property, $3,000 in Corporation A stocks, $1,000 in U.S. Savings Bonds and have $500 in your checking account. If Corporation A goes bankrupt, the most you could lose is
A) $13,500. B) $11,500. C) $3,000. D) $500.
Economics