The Table Shows the Number of Rubies and Diamonds That

question 1

Multiple Choice

The table shows the number of rubies and diamonds that Botswana and Namibia can mine using one day of labor. The opportunity cost of mining one diamond is _____ in Botswana and _____ in Namibia, and _____ has a comparative advantage in diamond production.
$\begin{array}{lclc} & \text { Rubies } & & \text { Diamonds } \\\text { Botswana } & 90 & \text { or } & 30 \\\text { Namibia } & 80 & \text { or } & 20\end{array}$

• A) 0.33 ruby; 0.25 ruby; Namibia
• B) 0.33 ruby; 0.25 ruby; Botswana
• C) 3 rubies; 4 rubies; Namibia
• D) 3 rubies; 4 rubies; Botswana

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Definitions:

Variable Selling

Costs that vary depending on the level of sales activity, such as commissions or shipping charges.

Administrative Expense

Expenses incurred by a business that are not directly tied to a specific function such as manufacturing, production, or sales. These can include salaries of executive personnel, accounting fees, and HR services.

Budgeted Fixed Selling

Budgeted fixed selling refers to the predetermined set of expenses associated with selling a product that do not change with sales volume.

Estimated Cost

A forecast or approximation of the expenses associated with a project, product, or service.