Use the Following to Answer Questions: Table: Production in the United

question 59

Multiple Choice

Use the following to answer questions: Table: Production in the United States and Germany $$\begin{array}{l}\text { Labor units required to produce: }\\\begin{array} { l c c } & \text { One Clock } & \text { One Sofa } \\\hline \text { United States } & 2 & 5 \\\text { Germany } & 3 & 9 \\\hline\end{array}\end{array}$$
-(Table: Production in the United States and Germany) According to the table, the opportunity cost of producing one sofa in the United States is _________, and the opportunity cost of producing one sofa in Germany is _______.

• A) two clocks; three clocks
• B) 10 clocks; 27 clocks
• C) 0.4 clocks; 0.33 clocks
• D) 2.5 clocks; three clocks

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Definitions:

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the true yield on an investment.

Irving Fisher

An American economist known for his contributions in the fields of economics and statistics, including the theory of interest and the Fisher equation.

Proprietors' Income

The income earned by the owners of unincorporated businesses.

Capitalist Income

The earnings from capital investment, including profits, interest, and dividends, attributed to owners in a capitalist economy.