Use the Following Scenario to Answer the Following Questions

question 80

Multiple Choice

Use the following scenario to answer the following questions:
Rosa and Dirk produce basketballs and footballs.Rosa can produce six basketballs per hour or two footballs per hour.Dirk can produce three basketballs per hour or four footballs per hour.
-Based on the scenario,Dirk's opportunity cost of one football is ________ basketball(s) .

• A) three-quarters of a
• B) one and a third
• C) three
• D) four
• E) six

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Definitions:

Adjusted Gross Income

An individual's total gross income minus specific deductions, used to determine taxable income on an income tax return.

FMV

Fair Market Value, which is the price that an asset would sell for on the open market between a willing buyer and a willing seller.

Basis

The amount invested in a property for tax purposes, typically the cost of the property which is used to figure gain or loss on sale.

Taxable Gain

The portion of income or profit on which taxes must be paid, often related to investments or capital assets.