If Both Natasha and Jameson Produce the Good for Which

question 10

Multiple Choice

If both Natasha and Jameson produce the good for which each has a comparative advantage,total output of this economy will be

• A) 10,000 pounds of cheese.
• B) 30 houses.
• C) 10,000 pounds of cheese and 30 houses.
• D) 5,000 pounds of cheese.
• E) 5,000 pounds of cheese and 20 houses.

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Definitions:

Reportable Segment

A component of a business that generates revenues and expenses related to the business’s operations, and whose financial results are regularly reviewed by the entity’s chief operating decision maker.

Minimum Revenue

The lowest amount of income considered acceptable or necessary for a company or project to stay viable.

Asset Test

A measure of the liquidity of a company by comparing its liquid assets to its current liabilities.

Reportable Segment

A distinguishable component of an enterprise engaging in operations from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity's chief operating decision maker.