Country a Can Produce 10 Yards of Textiles and 6

question 5

Multiple Choice

Country A can produce 10 yards of textiles and 6 pounds of food per unit of input.Compute the opportunity cost of producing food instead of textiles.

• A) 1 yard of textiles per 1.67 pounds of food
• B) 1 pound of food per 1.67 yards of textiles
• C) 1 yard of textiles per 0.6 pounds of food
• D) 1 pound of food per 0.6 yards of textiles

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Definitions:

Specific Performance

A legal remedy where a court orders a party to perform their obligations under a contract, rather than simply paying damages for breach.

Memorandum

A written record or communication used in business or diplomatic activities.

Statute of Frauds

A rule of law mandating that some agreements must be documented in written form to be legally binding.

Signature of Guarantor

The act of signing by a guarantor, who agrees to fulfill the obligations of a debtor in case the debtor fails to meet their commitments.