A Gardener Has the Ability to Grow Either Apples or Pears

question 8

Multiple Choice

A gardener has the ability to grow either apples or pears or some combination of the two. Given no other information, it follows that the gardener's opportunity cost of a pound of apples multiplied by his opportunity cost of a pound of pears

• A)is equal to 0.
• B)is between 0 and 1.
• C)is equal to 1.
• D)is greater than 1.

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Definitions:

Board Of Directors

A collection of persons chosen by the shareholders to supervise the corporation's management and make significant decisions on its behalf.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing the overall operations and resources of a company.

Measurement (Cost) Principle

A principle that states accounting information is based on actual cost incurred in transactions, which includes the initial purchase price plus any additional costs necessary to get the asset ready for use.

Accounting Principles

Fundamental concepts or guidelines that govern the field of accounting, such as consistency, relevance, reliability, and comparability.