Use the Following Scenario to Answer the Following Questions

question 7

Multiple Choice

Use the following scenario to answer the following questions:
Natasha can produce either 5,000 pounds of cheese or 20 houses per year.Jameson can produce either 5,000 pounds of cheese or 10 houses per year.
-Jameson's opportunity cost of producing one house is ________ pound(s) of cheese.

• A) 1/250 of a
• B) 1/20 of a
• C) 20
• D) 250
• E) 500

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Definitions:

Unearned Rent Revenue

Income received by a company for rent that has not yet been earned because the rental period has not occurred.

Office Space

Premises used by businesses to carry out their day-to-day activities and operations.

Interest-Bearing Note

A debt instrument that requires the borrower to pay not only the principal amount but also periodic interest payments.

Adjusting Entries

Entries made in journal accounts at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.