Question

Joe sold gold coins for $1,000 that he bought a year ago for $1,000. He says, "At least I didn't lose any money on my financial investment His economist friend points out that in effect he did lose money because he could have received a 3% percent return on the $1.000 if he had bought a bank certificate of deposit instead of the coins. The economist's analysis in this case incorporates the idea of Multiple Choice o normative economics o opportunity costs o ) marginal benefits that exceed marginal costs.

Answer 1

"B"

It incorporates the idea of opportunity cost as that is the next best option of investing that the person has left to buy gold coins. the answer is "B. "