If Jason Can Wash a Car in 20 Minutes and Wash

question 61

Multiple Choice

If Jason can wash a car in 20 minutes and wash a dog in 10 minutes and Megan can wash a car in 15 minutes and wash a dog in 15 minutes,which of the following statements is true?

• A)The opportunity cost of washing a car is greater for Megan.
• B)The opportunity cost of washing a car is one dog bath for Jason.
• C)Megan could wash two cars in the time it takes Josh to wash a dog.
• D)Jason has both a comparative and an absolute advantage in washing a dog.
• E)The opportunity cost of washing a dog is lower for Jason.

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Definitions:

Idle Cash

Idle cash refers to money that is not currently invested, spent, or utilized in any way, meaning it does not earn interest or contribute to the financial goals of an individual or company.

Money-Market Securities

Short-term financial instruments, typically with high liquidity and low risk, used for borrowing and lending in the money market.

Current Assets

Assets likely to be converted into cash, sold, or consumed within one year or the business cycle, whichever is longer.

Statement Of Financial Position

A financial document that shows the assets, liabilities, and equity of a company at a particular point in time, also known as a balance sheet.