Figure 3-1 -Refer to Figure 3-1.The Opportunity Cost of 1 Bushel of of 1

question 162

Multiple Choice

Figure 3-1

-Refer to Figure 3-1.The opportunity cost of 1 bushel of corn is

• A)4/5 bushel of wheat for Paul and 3/2 bushels of wheat for Cliff; thus, Paul has the comparative advantage in growing corn.
• B)4/5 bushel of wheat for Paul and 3/2 bushels of wheat for Cliff; thus, Cliff has the comparative advantage in growing corn.
• C)5/4 bushels of wheat for Paul and 2/3 bushel of wheat for Cliff; thus, Paul has the comparative advantage in growing corn.
• D)5/4 bushels of wheat for Paul and 2/3 bushel of wheat for Cliff; thus, Cliff has the comparative advantage in growing corn.

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Definitions:

Personal Liability

The state of being legally responsible for the debts or actions of oneself, not shielded by corporate or other legal entities.

Incorporated

A legal status indicating that a business entity has been registered as a corporation, separating its liabilities and assets from those of its owners.

Model Business Corporation Act

A model set of laws proposed to standardize the regulation of corporate business practices across the United States.

Articles of Incorporation

Official documents filed with a governmental body to legally form a corporation, outlining its structure, purpose, and operations.