Figure 3-2 -Refer to Figure 3-2. If the Production Possibilities Frontier Shown

question 53

Multiple Choice

Figure 3-2

-Refer to Figure 3-2. If the production possibilities frontier shown is for two months of production, then which of the following combinations of peanuts and cashews could Venezuela produce in two months?

• A)7 pounds of peanuts and 135 pounds of cashews
• B)5 pounds of peanuts and 160 pounds of cashews
• C)2 pounds of peanuts and 240 pounds of cashews
• D)3 pounds of peanuts and 150 pounds of cashews

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Definitions:

Capital Contribution

The funds, property, or other assets provided by owners or partners to a company for use in the business.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Dissolved

The process of officially closing and ending the existence of a company or partnership.

Operating Agreement

An agreement in which the members of a limited liability company set forth the details of how the business will be managed and operated.