Figure 3-5 These Graphs Illustrate the Production Possibilities Available for Dancing Shoes

question 56

Multiple Choice

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
-Refer to Figure 3-5. What is the opportunity cost of one pair of tap shoes for Ginger?

• A) 1/4 pair of ballet slippers
• B) 1/3 pair of ballet slippers
• C) 3/4 pair of ballet slippers
• D) 4/3 pairs of ballet slippers

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Definitions:

Compounded Monthly

Interest calculated on the initial principal and also on the accumulated interest of previous periods, with the process happening every month.

Compounded Semi-annually

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods, applied twice a year.

Equivalent Cash

A term typically used to describe a sum of money that has the same value as another form of financial instrument or asset.

Compounded Semi-annually

Involves the calculation and addition of interest to the principal sum twice per year.