A Nation Can Produce Two Products: Tanks and Autos

question 62

Multiple Choice

A nation can produce two products: tanks and autos. The table below is the nation's production possibilities schedule. The total opportunity cost of one unit(s) of tanks is

• A)100 units of autos.
• B)50 units of autos.
• C)1,000 units of autos.
• D)950 units of autos.

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Definitions:

Pre-tax Effect

The impact of an event or transaction on a company's financials before taking into account the effects of income tax.

Units

A measurement or quantity of something, often used in the context of production, sales, or inventory.

LIFO Liquidation

A situation where older inventory, costed at historical prices, is sold, possibly resulting in higher reported profits due to inflation.

Pre-tax Effect

The impact on financial results before the adjustment for taxes has been made.