Table 2-12 Table 2-12 Shows the Number of Labor Hours

question 391

Multiple Choice

Table 2-12
Table 2-12 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.
-Refer to Table 2-12. What is Honduras's opportunity cost of producing one sailboat?

• A) 1/5 of a canoe
• B) 1.5 canoes
• C) 4 canoes
• D) 5 canoes

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Definitions:

Constant Unit Cost

A situation where the cost to produce one unit of a good remains the same, regardless of the total quantity produced.

Demand Function

A mathematical relationship that expresses the quantity of a good or service demanded at various prices.

Newspaper Prices

The cost at which newspapers are sold to consumers, which can influence demand and circulation numbers.

Joint Operating Agreement

A contractual agreement among co-venturers specifying the terms and conditions under which a joint venture will operate and the responsibilities and share of each participant.