In New Zealand One Worker Can Produce 40 Walking Sticks

question 21

Multiple Choice

In New Zealand one worker can produce 40 walking sticks or 10 boomerangs each hour.What is the opportunity cost of producing one walking stick?

• A)40 boomerangs
• B)10 boomerangs
• C)4 boomerangs
• D)1/4 of a boomerang
• E)1/2 worker

---

Definitions:

Enhancing Characteristics

Qualitative aspects of financial information that make it more useful for decision making, including comparability, verifiability, timeliness, and understandability.

Financial Information

Data concerning the financial status, performance, and changes in financial position of an entity that is useful to a wide range of users in making economic decisions.

Conceptual Framework Project

A systematic approach to developing a set of concepts that guide the creation, interpretation, and application of financial reporting and accounting standards.