Consider the Following Scenario to Answer the Next Four Questions

question 108

Multiple Choice

Consider the following scenario to answer the next four questions: Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake 1 loaf of bread and one hour to make 1 pie. Joey takes four hours to bake 1 loaf of bread and four hours to make 1 pie.
-What is Joey's opportunity cost of baking 1 pie?

• A) 4 pies
• B) 2 pies
• C) 1 pie
• D) 1 loaf of bread
• E) 1/2 loaf of bread

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Definitions:

Cost-benefit Analysis

A methodical strategy for evaluating the advantages and disadvantages of different options to identify the most effective method to realize benefits while ensuring cost savings.

Government

The organization or system through which a community or nation is managed and regulated.

Flood-control Projects

Initiatives aimed at managing or preventing the overflow of rivers, lakes, or oceans, to protect land and property.

Economic Grounds

The basis or rationale for decisions and actions based on economic factors, such as cost, benefits, and economic efficiency.