The Following Diagrams Show the Production Possibilities Boundaries for Austria

question 28

Multiple Choice

The following diagrams show the production possibilities boundaries for Austria and Switzerland,for the production of bicycles and shoes. FIGURE 32-2 Refer to Figure 32-2.The diagrams illustrate that the ________ is lower in Austria than in Switzerland.

• A)opportunity cost of producing shoes
• B)opportunity cost of producing bicycles
• C)total cost of producing shoes
• D)average cost of producing bicycles
• E)comparative advantage in producing bicycles

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Definitions:

Depreciation Percentage

The rate at which a company depreciates an asset, expressed as a percentage of its total value.

Double-Declining-Balance

An accelerated method of depreciation which doubles the usual rate of depreciation of assets, allowing for faster write-offs.

Units-Of-Output

A depreciation method that allocates the cost of an asset over its useful life based on the units it produces, reflecting the asset's wear and tear more accurately.

Straight-Line

A method of calculating depreciation or amortization by evenly distributing an asset's cost over its useful life.