Table 3-26 Assume That Japan and Korea Can Switch Between Producing Cars

question 163

Multiple Choice

Table 3-26
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
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-Refer to Table 3-26. Japan's opportunity cost of one airplane is

• A)1/5 car and Korea's opportunity cost of one airplane is 1/3 car.
• B)1/5 car and Korea's opportunity cost of one airplane is 3 cars.
• C)5 cars and Korea's opportunity cost of one airplane is 1/3 car.
• D)5 cars and Korea's opportunity cost of one airplane is 3 cars.

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Definitions:

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company's total net income.

Cost Of Goods Sold

Costs that are directly incurred in the process of producing goods for sale by a company, such as labor and material expenses.

Selling And Administrative Expenses

Costs incurred by a company that are not directly tied to a specific product or service's production but are necessary for running the business.