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

---

Definitions:

Regular Rate

The standard rate of pay for an employee's normal working hours, not including overtime or bonuses.

Warranty Expense

Costs associated with the obligation of a company to repair, replace, or compensate for defective goods sold to customers.

Warranty Liability

Warranty liability is an obligation that a company assumes when it promises to repair or replace defective products during a specified period, representing a potential future expense.

Federal Unemployment Tax

A payroll tax paid by employers based on the wages paid to employees, used to fund state workforce agencies.