Suppose that you own a house. What is the opportunity cost of living in the house?
A) The opportunity cost is the rent you could have received from a tenant if you didn't live there.
B) There is no opportunity cost unless you could set up a business in the house.
C) There is no opportunity cost because you own the house.
D) The opportunity cost is the cost of your monthly mortgage payment plus bills.
A
Economics
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You get bit by your neighbor's dog, and incur $200 in emergency medical expenses. What happens to GDP?
A) It increases by $200. B) It decreases by $200. C) It remains unchanged. D) It depends upon whether you or the dog owner pays the medical bill.
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