Table 2-7 Table 2-7 Shows the Output Per Month of Two People

question 116

Multiple Choice

Table 2-7

Table 2-7 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2-7.What is Fred's opportunity cost of making a unicycle?

• A)1/3 of a pogo stick
• B)3 pogo sticks
• C)1/2 of a unicycle
• D)1.3 pogo sticks

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Definitions:

Evaluating Alternatives

The process of comparing and assessing different options in order to select the most appropriate or effective solution to a problem.

Gathering Information

The act of collecting data or facts from various sources for analysis or decision-making.

Risk Aversion

The tendency to choose options that entail fewer risks and less uncertainty.

Risks

Potential events or situations that could lead to harm or loss, often requiring management or mitigation in various contexts.