Figure 3-23 the Graph Below Represents the Various Combinations of Ham and Ham

question 127

Multiple Choice

Figure 3-23
The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month.
-Refer to Figure 3-23.In the nation of Cropitia,the opportunity cost of a pound of cheese is 1.5 pounds of ham.Bonovia and Cropitia both can gain from trading with one another if one pound of cheese trades for

• A)1.0 pound of ham.
• B)1.4 pounds of ham.
• C)2.1 pounds of ham.
• D)All of the above are correct.

---

Definitions:

Par Value

The stated value of a stock or bond as designated by the issuer.

Privately Held Corporation

A corporation owned by private investors, its shares are not traded publicly on stock exchanges.

Corporation

A legal entity that is separate from its owners, providing limited liability protection to its shareholders and having the ability to raise capital by selling shares.

Held

Usually refers to assets or investments retained over a period, not sold or traded.