Use the Following to Answer Questions

question 117

Multiple Choice

Use the following to answer questions :
-(Table: Production Possibilities Schedule I) Look at the table Production Possibilities Schedule I. The opportunity cost of producing the fourth unit of consumer goods is _____ units of capital goods.

• A)2
• B)4
• C)6

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Definitions:

Franchise

A contractual right to sell certain products or services, use certain trademarks, or perform activities in a geographical region

Residual Value

The estimated value of an asset at the end of its useful life, often used in computing depreciation or lease payments.

Depletion Rate

A measure used in accounting to allocate the cost of extracting natural resources, such as timber, minerals, and oil, from the earth over the period of their extraction.

Oil Well

A drilling operation that extracts petroleum from the ground.