Use the Following to Answer Questions

question 168

Multiple Choice

Use the following to answer questions :
Figure: Comparative Advantage
Eastland and Westland produce only two goods, boxes of peaches and boxes of oranges, and this figure shows each nation's production possibility frontier for the two goods.
-(Figure: Comparative Advantage) Look at the figure Comparative Advantage. The opportunity cost of producing 1 box of oranges for Westland is _____ box(es) of peaches.

• A)1
• B)0.25
• C)4
• D)10

---

Definitions:

Estimated

An approximation or educated guess based on available data or past experience, often used in budgeting and forecasting financial figures.

Raw Materials

The fundamental materials used in the production process, which are transformed into finished goods.

Inventory Balance

The quantity of goods or materials on hand at a given time, representing the difference between inventory received and inventory sold or used.

Direct Labor Cost

The cost of wages and benefits for employees who are directly involved in the production of goods.