Katie and Hugh Are Producing Pies and Jars of Pickles

question 115

Multiple Choice

Katie and Hugh are producing pies and jars of pickles.Katie can produce either 200 jars of pickles or 100 pies per month.Hugh can produce either 800 jars of pickles or 200 pies per month.Which of the following statements is correct?

• A)Katie's opportunity cost of producing 1 jar of pickles is 2 pies.
• B)Katie's opportunity cost of producing 1 jar of pickles is 1/2 of a pie.
• C)Hugh's opportunity cost of producing 1 jar of pickles is 4 pies.
• D)Hugh's opportunity cost of producing 1 pie is 1/4 jar of pickles.
• E)Hugh's and Katie's opportunity costs of producing are the same.

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Definitions:

Agricultural Sector

A segment of an economy that deals with the production, processing, and distribution of agricultural products.

Withdrawal Needs

Pertains to the amount of money an individual requires to take out from savings or investments to meet their personal or financial obligations.

Total Profit

The entire financial gain obtained by a business or an individual after all expenses and costs have been deducted from the total revenue.

Development Requirement

Conditions that must be met for a region or country to achieve economic growth, including infrastructure, education, and healthcare.