The Data in the Table Below Assumes That with the Same

question 105

Multiple Choice

The data in the table below assumes that with the same quantity of resources, both Australia and Philippines produces food and computers. Australia can make 1,000 computers or 2,000 units of food in a day, and the Philippines can make 200 computers or 1,200 units of food in a day.Table 20.2

-According to Table 20.2, what is the opportunity cost of 1 computer in the Philippines?

• A)6 units of food
• B)Three-fifths of a unit of food
• C)One-sixth of a unit of food
• D)2 units of food
• E)1 unit of food

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Definitions:

Borrowed Funds

Money that an entity borrows from another to finance its operations, investments, or other expenditures that must be repaid with interest.

Report Rates

The interest rates reported by financial institutions, often related to loans or deposits, to regulatory bodies or in their financial statements.

LIBOR

The London Interbank Offered Rate is a standard interest rate used by leading international banks for loans to each other.

Federal Funds Rate

The Federal Funds Rate is the interest rate at which depository institutions lend reserves maintained at the Federal Reserve to other depository institutions overnight.