-Sam's Opportunity Cost of Producing an Extra Pair of Shoes

question 46

Multiple Choice

-Sam's opportunity cost of producing an extra pair of shoes is

• A) 3/4 pairs of pants.
• B) 4/5 pairs of pants.
• C) 1 pair of pants.
• D) 5/4 pairs of pants.
• E) 4/3 pairs of pants.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of a company.

Long-Term Debt

A financial obligation that is due for repayment in more than one year's time.

Ten-Year Treasury Note

A government debt security issued by the U.S. Treasury with a ten-year maturity, which pays interest to the holder every six months.