Reference: Ref 2-7 (Table: Production Possibilities for Italy and Belgium)

question 17

Multiple Choice

Reference: Ref 2-7 (Table: Production Possibilities for Italy and Belgium) According to the table on Production Possibilities for Italy and Belgium, the opportunity cost of 1 pound of linen for Belgium is:

• A) 5 pounds of pasta.
• B) 4 pounds of pasta.
• C) 1/4 pound of pasta.
• D) 20 pound of pasta.

---

Definitions:

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a specific period.

Inventory

Refers to the goods and materials a business holds for the purpose of resale or production.

Cost Of Goods Sold

Costs that are directly related to the production of goods a company sells, encompassing expenses for labor and materials.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, highlighting the profitability of a company.