Ken and Traci Are Two Woodworkers Who Both Make Tables

question 10

Multiple Choice

Ken and Traci are two woodworkers who both make tables and chairs.In one month,Ken can make 3 tables or 18 chairs,whereas Traci can make 8 tables or 24 chairs.Given this,we know that the opportunity cost of 1 table is

• A)1/6 chair for Ken and 1/3 chair for Traci.
• B)1/6 chair for Ken and 3 chairs for Traci.
• C)6 chairs for Ken and 1/3 chair for Traci.
• D)6 chairs for Ken and 3 chairs for Traci.

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Definitions:

Consumer Protection Act

A law designed to safeguard consumers from unfair, deceptive, or predatory business practices and to ensure fair trade competition.

TED Spread

The difference between the interest rates on short-term US government debt and interbank loans, indicating credit risk in the general economy.

LIBOR

The London Interbank Offered Rate, representing the interest rate banks charge each other for short-term loans.

Treasury-Bill Rate

The yield or interest rate on U.S. government short-term debt instruments, such as treasury bills, which are considered among the safest investments.