In 2008, Precision Pattern Interiors, Which Makes High-End Aircraft Interiors

question 231

Multiple Choice

In 2008, Precision Pattern Interiors, which makes high-end aircraft interiors, began a $1 million renovation of a building at the Hutchinson Air Base Industrial Tract south of Yoder, Kansas. The company also planned to add some $400,000 in new equipment and triple its Yoder work force. Which of Precision Pattern Interiors' decisions is a short run decision?

• A) triple its Yoder work force
• B) $1 million renovation of a building at the Hutchinson Air Base Industrial Tract
• C) $400,000 in new equipment purchases
• D) All of these decisions are short run decisions.

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Definitions:

Trade

The swapping of goods and services between two or more parties, within a single economy or across multiple economies.

Opportunity Cost

Giving up on possible rewards from various other options by selecting a single alternative.

Absolute Advantage

A condition in which a country, individual, or company can produce a particular good or service at a lower cost in terms of labor and resources than other entities.

Compasses

Navigation instruments used for determining direction relative to the Earth's magnetic poles.