2 A farmer reduces the land used to grow wheat from 80 hectares to 60 hectares and increases the use of the land for growing potatoes from 80 to 100 hectares.
What is the opportunity cost of this change?
A The output from 20 hectares used for growing potatoes.
B The output from 20 hectares used for growing wheat.
C The output from 60 hectares used for growing wheat.
D The output from 80 hectares used for growing potatoes.

The correct answer is B. The output from 20 hectares used for growing wheat.

Explanation:

Given that a farmer reduces the land used to grow wheat from 80 hectares to 60 hectares and increases the use of the land for growing potatoes from 80 to 100 hectares, to determine what is the opportunity cost of this change, the following calculation must be performed:

80 - 60 = 20

Thus, given that the opportunity cost is what is given, lost or not gained to obtain a certain benefit, and in the case that benefit is that of obtaining 20 hectares to grow potatoes, the cost of said benefit is the loss of 20 hectares used to grow wheat.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

c

explanation: