-The Above Table Shows Production Combinations on a Country?s Production

question 99

Multiple Choice

$$\begin{array} { | l | l | l | } \hline \text { Point } & \begin{array} { l } \text { Production of } \\X\end{array} & \begin{array} { l } \text { Production of } \\Y\end{array} \\\hline \text { A } & 0 & 40 \\\hline B & 3 & 36 \\\hline \text { C } & 6 & 28 \\\hline \text { D } & 9 & 16 \\\hline \text { E } & 12 & 0 \\\hline\end{array}$$
-The above table shows production combinations on a country?s production possibilities frontier. What is the opportunity cost of increasing the production of X from 0 to 3 units?

• A) 3 units of good Y per unit of good X
• B) 4/3 units of good Y per unit of good X
• C) 40 units of good Y per unit of good X
• D) 0 units of good Y per unit of good X

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Definitions:

Unrealized Profits

Profits that have been generated on paper through investments but have not actually been realized through a sale or exchange.

Intercompany Transactions

Transactions between entities within the same group that are eliminated in the process of preparing consolidated financial statements to avoid double counting.

Wholly Owned

A company whose entire share capital is 100% owned by another company, making it a complete subsidiary.

Unrealized Profit

Profits that have been accounted for but not yet realized through a transaction, such as stocks that have increased in value but have not been sold.