Table 3-23 Assume That the Farmer and the Rancher Can Switch Between

question 64

Multiple Choice

Table 3-23
Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate.
​
-Refer to Table 3-23. The opportunity cost of 1 pound of pork for the farmer is

• A)1/2 pound of tomatoes.
• B)1/2 hour of labor.
• C)2 pounds of tomatoes.
• D)2 hours of labor.

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Definitions:

Sales Tax

Sales tax is a tax imposed by governments on sales of goods and services, collected by the retailer at the point of sale.

Installation

Installation involves setting up or putting into place a piece of equipment or system, often requiring technical skills and specific procedures.

Equipment Account

An account in financial statements that represents the cost of equipment purchased by a business, excluding any accumulated depreciation.

Land Improvements

An asset account that records improvements made to land; such improvements have a limited life and are subject to depreciation (examples are a driveway or fences).