Use the Production Possibilities Data Below for Honduras and Nicaragua

question 216

Multiple Choice

Use the production possibilities data below for Honduras and Nicaragua to answer the following question(s) .
Table 2-2

-Refer to Table 2-2. Which of the following would be a mutually agreeable rate of exchange?

• A) Nicaragua trades one orange to Honduras for every one apple.
• B) Nicaragua trades one orange to Honduras for every two apples.
• C) Nicaragua trades one orange to Honduras for every three apples.
• D) Nicaragua trades one orange to Honduras for every four apples.

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Definitions:

Accounts Receivable

Outstanding payments from clients to a business for goods delivered or services rendered, awaiting settlement.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been delivered or used but not yet paid for.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company’s balance sheet.

Net Income

The total earnings or profit of a company after subtracting all expenses, including taxes, interest, and operating expenses, from total revenue.