The Following Question(s)relate(s)to the Material in the Addendum to Chapter

question 72

Multiple Choice

The following question(s) relate(s) to the material in the addendum to Chapter 2.Use the production possibilities data for Lebos and Slavia below to answer the question(s) .
Table 2-4

-Refer to Table 2-4.Which of the following is correct?

• A)In Lebos,the opportunity cost of producing one unit of food is equal to one unit of clothing.
• B)In Slavia,the opportunity cost of producing one unit of food is equal to two units of clothing.
• C)The opportunity cost of producing food in Lebos is less than the opportunity cost of producing food in Slavia.
• D)All of the above are correct.

---

Definitions:

Stock Dividend

A payment made in the form of additional shares rather than cash, distributed to shareholders from the company's existing stock.

Cash Dividends Payable

A liability account on a company’s balance sheet representing the amount of dividends declared by the board of directors but not yet paid out to shareholders.

General Journal Entry

A basic accounting record used to log all business transactions and events in the accounting system.

Cash Dividends

Payments made to shareholders out of a company's earnings, representing a share of the profits.