Figure 3-11 the Graph Below Represents the Various Combinations of Ham and Ham

question 65

Multiple Choice

Figure 3-11
The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month.

-Refer to Figure 3-11.The nation of Cropitia has a comparative advantage over Bonovia in producing ham if

• A) Cropitia can produce more than 400 pounds of ham per month.
• B) Cropitia can produce more than 320 pounds of cheese per month.
• C) Cropitia's opportunity cost of producing a pound of ham is less than 0.8 pounds of cheese.
• D) Cropitia's opportunity cost of producing a pound of ham is greater than 0.8 pounds of cheese.

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Definitions:

Acid-Test Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Working Capital

Current assets less current liabilities.

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Marketable Securities

Short-term investments that are easily convertible into cash, typically within one year.