Table 3-8 Assume That Kito and Penda Can Switch Between Producing Baskets

question 61

Multiple Choice

Table 3-8
Assume that Kito and Penda can switch between producing baskets and producing birdhouses at a constant rate.

-Refer to Table 3-8.The opportunity cost of 1 basket for Kito is

• A) 1/4 birdhouse.
• B) 2/3 birdhouse.
• C) 3/2 birdhouses.
• D) 4 birdhouses.

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Definitions:

Cheques

Cheques are written, dated, and signed instruments that direct a bank to pay a specific sum of money from the cheque writer's account to the person or entity in whose name the cheque has been issued.

Bank Charges

Bank charges are fees imposed by banks for various services, including account maintenance, transactions, overdrafts, and loan management.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, representing a secure, low-risk investment.

Net Present Value

A valuation method that calculates the present value of expected future cash flows minus initial investment, used to assess investment opportunities.