Use the Following Scenario to Answer the Next Questions

question 20

Multiple Choice

Use the following scenario to answer the next questions:
Natasha can produce either 5,000 pounds of cheese or 20 houses per year. Jameson can produce either 5,000 pounds of cheese or 10 houses per year.
-Jameson's opportunity cost of producing one house is ______pound(s) of cheese.

• A) 1/250 of a
• B) 1/20 of a
• C) 20
• D) 250
• E) 500

---

Definitions:

Productivity

The assessment of how effectively a person, machine, factory, or system can transform inputs into valuable outputs.

Labor Input

Refers to the total hours worked or the number of employees engaged in production in the economy.

Goods and Services

The tangible products (goods) and intangible activities (services) that satisfy human wants and needs and are offered in the market.

Market Economy

An economic system in which production and prices are determined by unrestricted competition between privately owned businesses.