Consider the Following Scenario to Answer the Questions That Follow

question 40

Multiple Choice

Consider the following scenario to answer the questions that follow.
Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake one loaf of bread and one hour to make one pie. Joey takes four hours to bake one loaf of bread and four hours to make one pie.
-What is Rachel's opportunity cost of baking a loaf of bread?

• A) 4 pies
• B) 2 pies
• C) 1 pie
• D) 1 loaf of bread
• E) 1/2 loaf of bread

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Definitions:

Equitable Warranties

Legal promises implied by law that ensure fairness and the truthful disclosure of important information typically in property transactions.

Due-on-sale Warranties

Clauses within a mortgage agreement that require the full loan amount to be repaid if the property is sold.

Express Warranties

Explicit promises made by a seller about the quality, condition, or performance of goods being sold.

Implied Warranties

Unspoken and unwritten guarantees assumed by law that the product or service offered for sale meets certain standards of quality and reliability.