If Helen Can Paint One Room in the Time It

question 28

Multiple Choice

If Helen can paint one room in the time it takes her to bake 40 cakes and Josh can paint one room in the time it takes him to bake 60 cakes, which of the following is correct?

• A) The opportunity cost of painting is higher for Helen.
• B) The opportunity cost of baking cakes is lower for Josh.
• C) Helen's opportunity cost of painting one room is equal to 1/40 of a cake.
• D) Josh's opportunity cost of baking one cake is equal to painting 60 rooms.
• E) The opportunity cost of cakes cannot be computed.

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Definitions:

ROE

Return on Equity, a financial performance metric determined by dividing net income by shareholders' equity.

Industry Life Cycle

The stages through which an industry goes from its inception to its decline, typically categorized as introduction, growth, maturity, and decline.

Necessities

Basic needs required for sustaining human life, such as food, water, shelter, and clothing.

Income

Money received, especially on a regular basis, for work or through investments.