Figure 2-13 Figure 2-13 Shows the Production Possibilities Frontiers

question 244

Multiple Choice

Figure 2-13 Figure 2-13 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts.
-Refer to Figure 2-13. What is the opportunity cost of producing 1 ton of pineapples in Costa Rica?

• A) 3/8 of a ton of coconuts
• B) 2/3 of a ton of coconuts
• C) 1 1/2 tons of coconuts
• D) 100 tons of coconuts

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Definitions:

Loss

Occurs when a company's expenses exceed its revenues, resulting in a negative profit.

Discount on Bonds Payable

The difference between the face value of bonds and their selling price, when the bonds are sold for less than their face value.

Redeems

The act of exchanging something such as coupons, vouchers, or securities for goods, services, or money.

Gain

Financial benefit realized from activities such as the sale of an asset for more than its original purchase price.