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Michael and Angelo Are Both Artists Who Can Create Sculptures

question 46

Multiple Choice

Michael and Angelo are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.Does either one have a comparative advantage? Michael and Angelo are both artists who can create sculptures or paintings each day.The following table describes their maximum outputs per day.Does either one have a comparative advantage?   A) Yes,Michael has a comparative advantage in both sculptures and paintings. B) Yes,Angelo has a comparative advantage in both sculptures and paintings. C) Yes,Michael has a comparative advantage in paintings,and Angelo has a comparative advantage in sculptures. D) Yes,Michael has a comparative advantage in sculptures,and Angelo has a comparative advantage in paintings. E) No,neither has a comparative advantage.


Definitions:

Operating Cash Flow

The cash generated from the normal operations of a company, reflecting the amount of cash earned from the production and selling of goods and services.

Depreciation Expense

The allocated portion of the cost of a fixed asset to expense over the asset's useful life to represent its use and wear and tear over time.

Interest Expense

The financial charge an organization incurs from taking out loans.

Tax Rate

The percentage of an individual's or corporation's income or profits that is paid to the government as tax.

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