Betty and Ann Live on a Desert Island

question 198

Multiple Choice

Betty and Ann live on a desert island. With a day's labor, Ann can produce 6 fish or 4 coconuts; Betty can produce 3 fish or 1 coconut. Betty's opportunity cost of producing 1 fish is ________, and she should specialize in the production of ________.

• A) 1/3 coconut per fish; fish
• B) 2/3 coconut per fish; coconuts
• C) 1 coconut per fish; fish
• D) 4 coconuts per fish; fish

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Definitions:

Share Capital Account

a financial record that represents the funds raised by a company through issuing shares to its shareholders.

Consolidated Statements

Reports that combine the financial performance and position of a parent company and its subsidiaries, offering a comprehensive overview of the total business.

Direct Approach

A method of presenting the cash flow statement where major classes of gross cash receipts and gross cash payments are disclosed, offering transparency in financial reporting.

Comprehensive Income

The total change in equity for a reporting period other than transactions from owners, encompassing all recognized income and expenses.