alleryStart learning →Making 100 tonnes of tea costs Country A 20 tonnes of wool. The cost per tonne of tea is
A0.2 tonnes of wool
B2 tonnes of wool
C5 tonnes of wool
D20 tonnes of wool
Answer & Solution
Correct answer: A. 0.2 tonnes of wool
Giving up 20 tonnes of wool for 100 tonnes of tea means 20 divided by 100, or 0.2 tonnes of wool per tonne of tea.
Keep practising Basic Problems of an Economy and Role of Price Mechanism
Browse all Basic Problems of an Economy and Role of Price Mechanism questions for CA Foundation, or explore more Business Economics topics.
Related questions
Malthus argued that population grows exponentially while food supply growsAbsolute scarcity is the condition where human requirements areThe least-cost method of production relates to the problem ofA country has comparative advantage if it produces a good at a lowerAccounting profit differs from economic profit because accounting ignoresThe opportunity cost of using firm-owned resources is itsOut-of-pocket costs of a firm, easily identified, are calledOpportunity cost of a choice is the value of the