Use the Following to Answer Question

question 172

Multiple Choice

Use the following to answer question:

-(Table: Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I.The opportunity cost of producing the fourth unit of consumer goods is _____ units of capital goods.

• A)2
• B)4
• C)6

---

Definitions:

Ratio

A quantitative relation between two amounts showing the number of times one value contains or is contained within the other.

Liabilities

Financial obligations a company owes to outside parties, such as loans, accounts payable, and bonds payable.

Stockholders' Equity

The portion of a company's capital that comes from the investment of its shareholders, represented by the shares issued to them.

Profitability

The degree to which a company or business activity makes a profit, typically measured over a specific period of time.