Consider the Following Two Tables $\text { North Cantina }$ $\quad$

question 16

Multiple Choice

Consider the following two tables. $\text { North Cantina }$ $\quad$$\quad$$\text { Production Possibilities}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { (alternatives) }$
$\begin{array}{ | l | r | r | r | r | r | r | } \hline & \text { A } & \text { B } &{ \text { C } } & { \text { D } } & { \text { E } } & { \text { F } } \\\hline \text { Hamburgers } & 5 & 4 & 3 & 2 & 1 & 0 \\\hline \text { Hot dogs } & 0 & 10 & 18 & 24 & 28 & 30 \\\hline\end{array}$

$\text { South Cantina }$ $\quad$$\quad$$\text { Production Possibilities}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { (alternatives) }$
$\begin{array} { | l | c | c | r | r | r | r | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\\hline \text { Hamburgers } & 5 & 4 & 3 & 2 & 1 & 0 \\\hline \text { Hot dogs } & 0 & 8 & 15 & 21 & 25 & 27 \\\hline\end{array}$
Suppose that North Cantina is producing 2 hamburgers and 17 hot dogs while South Cantina is producing 2 hamburgers and 21 hot dogs.We can conclude that:

• A)North Cantina is fully employing its resources but South Cantina is not
• B)South Cantina is fully employing its resources but North Cantina is not
• C)neither South Cantina nor North Cantina is fully employing its resources
• D)both South Cantina and North Cantina are fully employing their resources
• E)resources are perfectly shiftable between hotdogs and hamburgers

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Definitions:

Liability

A financial obligation or debt that an entity is required to pay to another party, often arising from past transactions or events.

Revenue

The total amount of money generated by a company from its normal business operations, before any deductions are made.

Operating Cash Flows

Money generated from a company's regular business operations, indicating its ability to cover expenses and invest.

Fixed Assets

Long-term tangible assets such as buildings, machinery, and equipment that a company uses in its operations and is not expected to consume or convert into cash within one year.