Mike and Sandy Are Two Woodworkers Who Both Make Tables

question 79

Multiple Choice

Mike and Sandy are two woodworkers who both make tables and chairs.In one month,Mike can make 4 tables or 20 chairs,where Sandy can make 6 tables or 18 chairs.Given this,we know that the opportunity cost of 1 table is

• A) 1/5 chair for Mike and 1/3 chair for Sandy.
• B) 1/5 chair for Mike and 3 chairs for Sandy.
• C) 5 chairs for Mike and 1/3 chair for Sandy.
• D) 5 chairs for Mike and 3 chairs for Sandy.

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Definitions:

Stocks

Shares of ownership in a corporation, giving holders a claim on part of the company's assets and profits.

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The process of selecting a mix of assets to achieve specific investment goals, taking into account risk tolerance and investment horizon.

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The process of examining and evaluating the financial health of securities for investment purposes, often involving fundamental or technical analysis.

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An investment strategy that starts with global or macroeconomic factors before identifying specific stocks or sectors.