The Tables Give Production Possibilities Data for Two Countries, Alpha ${ \text { Alpha's production possibilities } }$

question 22

Multiple Choice

The tables give production possibilities data for two countries, Alpha and Beta, which have populations of equal size.
${ \text { Alpha's production possibilities } }$
$\begin{array}{l}\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline \text { Fish (Tons) } & 80 & 60 & 40 & 20 & 0 \\\hline \text { Chips (Tons) } & 0 & 5 & 10 & 15 & 20 \\\hline\end{array}\\\\\\{ \text { Beta's production possibilities } } \\\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline \text { Fish (Tons) } & 240 & 180 & 120 & 60 & 0 \\\hline \text { Chips (Tons) } & 0 & 10 & 20 & 30 & 40 \\\hline\end{array}\end{array}$ The domestic opportunity cost of

• A) producing a ton of chips in Alpha is 1/5 of a ton of ?sh. \[1 / 5\]
• B) producing a ton of chips in Beta is 6 tons of ?sh.
• C) catching a ton of ?sh in Alpha is 5 tons of chips.
• D) catching a ton of ?sh in Beta is 6 tons of chips.

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Definitions:

Useful Life

The estimated duration of time over which an asset is expected to be usable by its owner for its intended purpose.

Cash Inflows

Money received by a business from various sources, including sales, investments, and financing activities.

Project Profitability Index

A financial metric used to evaluate the attractiveness of a project or investment, calculated as the present value of future cash flows divided by the initial investment.

Investment Proposals

Plans or suggestions put forward for consideration by stakeholders with the objective of investing resources with the expectation of generating returns.