Table 351 Based on the Information in Table 35

question 64

Multiple Choice

Table 35.1 $$\begin{array} { | l | c | c | } \hline { \text { Country } } & \text { Tons of Soybeans } & \text { Computer } \\\hline \text { China } & 100 & 300 \\\hline \text { United States } & 150 & 750 \\\hline\end{array}$$ 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 ton of soybeans will exchange for

• A)More than 3 computers but less than 5.
• B)More than 1/5 of a computer but less than 1/3.
• C)Less than 3 computers.
• D)Zero computers.

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Definitions:

Sum-Of-The-Years'-Digits Depreciation

A method of depreciation that results in a more accelerated write-off of the asset than the straight-line method, basing the expense on a fraction that decreases year by year.

Useful Life

The estimated duration an asset is expected to be economically viable or productive.

Composite Depreciation Method

A method used to depreciate a group of assets that have different lives and uses as one single asset, applying a uniform depreciation rate.