Suppose That a Worker in Cornland Can Grow Either 40

question 65

Multiple Choice

Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 20 bushels of corn or 5 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. What is the opportunity cost of 1 bushel of oats in Cornland?

• A) 1/10 bushels of corn
• B) 1/4 bushels of corn
• C) 4 bushels of corn
• D) 10 bushels of corn

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Definitions:

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A provision in the tax code that allows an individual or company to use losses from one year to offset future profits for tax purposes.

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Expansion of a company's operations through acquisitions, mergers, or partnerships, rather than through organic growth.

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