Figure 3-11 the Graph Below Represents the Various Combinations of Ham and Ham

question 65

Multiple Choice

Figure 3-11
The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month.

-Refer to Figure 3-11.The nation of Cropitia has a comparative advantage over Bonovia in producing ham if

• A) Cropitia can produce more than 400 pounds of ham per month.
• B) Cropitia can produce more than 320 pounds of cheese per month.
• C) Cropitia's opportunity cost of producing a pound of ham is less than 0.8 pounds of cheese.
• D) Cropitia's opportunity cost of producing a pound of ham is greater than 0.8 pounds of cheese.

---

Definitions:

Investee

An entity in which an investor holds an interest, where the investor has significant influence but not full control or ownership.

Periodic Net Income

The profit or loss reported by a company at the end of a specific accounting period, reflecting all revenues and expenses.

Trading Securities

Financial assets that a company buys and sells with the intention of making a profit in the short term.

Debt Securities

Notes and bond investments that provide interest revenue over a fixed maturity.