Use the Following Scenario to Answer the Next Eight Questions

question 103

Multiple Choice

Use the following scenario to answer the next eight questions:
Rosa and Dirk produce basketballs and footballs. Rosa can produce six basketballs per hour or two footballs per hour. Dirk can produce three basketballs per hour or four footballs per hour.
-Based on the scenario,Rosa's opportunity cost of one football is:

• A) 4 basketballs.
• B) 1 1/2 basketballs.
• C) 6 basketballs.
• D) 3 basketballs.
• E) 8 basketballs.

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Definitions:

Underground Economy

Economic activities that occur outside of government regulation and taxation, including both illegal activities and unreported income from legal work.

Intermediate Goods

Products used in the production process to make other goods, not including raw materials.

Final Goods

Products that have completed the manufacturing process and are ready for use by consumers or to be sold as finished goods.

GDP

The total value of all ultimate goods and services generated within a country during a designated period is known as the Gross Domestic Product.