Use the following to answer questions: 
-(Table: Production Possibilities for Machinery and Petroleum) Look at the table Production Possibilities for Machinery and Petroleum. The opportunity cost of _____ is _____ in the United States as (than) in Mexico.
Definitions:
Desired Rate
The expected or target rate of return on an investment or project, often used as a benchmark for evaluating potential investment opportunities.
Depreciation Deduction
A tax deduction representing the decrease in value of an asset over time, allowed to be deducted from taxable income.
Internal Revenue Code
The comprehensive federal law that governs all aspects of income tax in the United States.
Capital Investment
Funds invested in a firm or enterprise for the purpose of furthering its business objectives.
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