Consider the Following Information About the Production of Two Goods,X

question 77

Multiple Choice

Consider the following information about the production of two goods,X and Y,in two countries,A and B: • In Country A it takes X_a units of resources to produce one unit of X and Y_a units of resources
To produce one unit of Y.
• In Country B it takes X_b units of resources to produce one unit of X and Y_b units of resources
To produce one unit of Y.
• Assume the amount of resources used to produce the goods in the two countries can be
Compared unambiguously.
TABLE 32-1
Refer to Table 32-1.There is no scope for gains from trade due to specialization between the two countries if

• A)(X_a/Y_a)is greater than (X_b/Y_b).
• B)X_a is equal to Y_b.
• C)(X_a/Y_a)is equal to (X_b/Y_b).
• D)X_a is less than Y_b and Y_a is less than Y_b.
• E)X_a is less than X_b.

Understand the ethical implications of report recommendations.

Grasp how to adequately present and document information within a report.

Appreciate the necessity of aligning recommendations with report conclusions and evidence.

Understand the influence of familiarity and exposure on interpersonal attraction.

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Definitions:

Sunk Cost

Costs that have already been incurred and cannot be recovered, and thus should not influence current/future business decisions.

Capital Budgeting

The process a business undertakes to evaluate potential major projects or investments, focusing on analyzing future cash flows and profitability.

Discount Rate

The yield rate utilized within DCF analysis for determining today's value of future cash movements.

Opportunity Costs

The financial impact of bypassing the alternative that ranks immediately lower in preference while making a choice.