Smith and Jones Comprise a Two-Person Economy

question 6

Multiple Choice

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below.

-Suppose Smith and Jones begin at the point of producing 0 computers and 220 calculators in one hour.If they wish to produce 2 computers and 200 calculators in one hour,then Smith will spend __________ and Jones will spend __________.

• A) 30 minutes on each;30 minutes on each.
• B) 48 minutes on computers and 12 minutes on calculators;1 hour on calculators.
• C) 1 hour on calculators;10 minutes on computers and 50 minutes on calculators.
• D) 6 minutes on computers and 54 minutes on calculators;10 minutes on computers and 50 minutes on calculators.
• E) 12 minutes on computers and 48 minutes on calculators;1 hour on calculators.

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Definitions:

Per Stirpes

A legal term describing a method of distributing an estate whereby each branch of the deceased's family receives an equal share of the estate.

Estate

The total of all the assets, properties, and liabilities that a person leaves behind upon death.

Fraud

(1) An intentional deception that causes harm to another. (2) A basis for contesting a will if the testator relied on false statements when he or she made the will.

False Statements

Assertions or claims that are not true, which in certain contexts, such as under oath in court or in financial reporting, can be illegal or fraudulent.