A Country Produces Only Apples and Bananas

question 63

Multiple Choice

A country produces only apples and bananas.Moving from point A to point B along its production possibilities frontier,5 apples are forgone and 4 bananas are gained.What is the opportunity cost of a banana?

• A) 4 apples
• B) 5/4 of an apple
• C) 4/5 of an apple
• D) 1 banana
• E) None of the above answers is correct.

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Definitions:

Fees Earned

Income generated from services provided or work completed.

Statement Of Cash Flows

A financial report that shows how changes in the balance sheet and income statement affect cash and cash equivalents.

Operating Activity

Activities that relate directly to the operations of the company, including production, sales, and other core business functions.

Investing Activity

Financial operations related to acquiring or disposing of non-current assets, crucial for budgeting and strategic planning of an organization's capital.