If This Economy Produces More Than 20 Houses Per Year,the

question 60

Multiple Choice

If this economy produces more than 20 houses per year,the opportunity cost of a house will ________ because ________.

• A) decrease; production will be specialized
• B) increase; an input with a higher opportunity cost must be used
• C) decrease; inputs will be obtained at lower cost
• D) increase; all gains from trade have already been exploited
• E) remain the same; Natasha and Jameson produce in constant ratios regardless of level of output

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Definitions:

Project Life

The total duration from the initiation to the completion of a project, covering all stages of development and execution.

Accounting Break-Even

The point at which total revenues equal total expenses, and there is no profit or loss, specifically from an accounting perspective that includes non-cash expenses.

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Fixed Costs

Costs that remain constant regardless of the amount of products or services a company produces, including expenditures like rent, wages, and insurance fees.