Suppose That a Worker in Country a Can Make Either

question 122

Multiple Choice

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.Two possible consumption bundles that Country B could produce are:

• A) (7,200 bananas, 2,400 tomatoes) and (3,600 bananas, 1,200 tomatoes)
• B) (7,200 bananas, 0 tomatoes) and (4,000 bananas, 1,200 tomatoes)
• C) (3,600 bananas, 1,200 tomatoes) and (1,800 bananas, 1,600 tomatoes)
• D) (1,800 bananas, 1,800 tomatoes) and (900 bananas, 2,200 tomatoes)

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Definitions:

Administrative Costs

Expenses related to the general administration of a business, including salaries of executives, office supplies, and legal and accounting services.

Indirect Costs

Costs that cannot be directly linked to the production or sale of specific goods or services, like utilities or administrative salaries.

Advertising

The activity or profession of producing advertisements for commercial products or services.

Product Cost

The total cost involved in making or acquiring a product, including direct materials, labor, and overhead expenses.