Suppose an American Worker Can Make 50 Pairs of Gloves

question 126

Multiple Choice

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. What are their respective opportunity costs of one pair of gloves?

• A) 6 radishes for the United States and 2 radishes for Bangladesh
• B) 60 radishes for the United States and 20 radishes for Bangladesh
• C) 1/6 radishes for the United States and ½ radishes for Bangladesh
• D) 6,000 radishes for the United States and 2,000 radishes for Bangladesh

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Definitions:

Equity Stake

Ownership interest or share in a company, typically represented by holding the company's stock.

Business Plan

Written document that provides an orderly statement of a company’s goals, methods, and standards.

Mission Statement

A formal summary of the aims and values of a company, organization, or individual.

Executive Summary

One- to two-page snapshot of what the overall business plan explains in detail.