Based on the Information in Table 35

question 65

Multiple Choice

Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. For trade to be mutually beneficial for both countries, the terms of trade will be such that 1 computer will exchange for

• A) More than 3 tons of soybeans but less than 5.
• B) More than 1/5 of a ton of soybeans but less than 1/3.
• C) Less than 1/5 of a ton of soybeans.
• D) Zero soybeans.

---

Definitions:

Budgeted Fixed Selling

Budgeted fixed selling refers to the predetermined set of expenses associated with selling a product that do not change with sales volume.

Estimated Cost

A forecast or approximation of the expenses associated with a project, product, or service.

Goods Sold

The total number of products or services that a company sells during a specific period.

Cash Balance

The amount of cash held by a company at a given point in time.