Reference: Figure SEQ Figure 2: Production Possibilities Frontier

question 29

Multiple Choice

Reference:
Figure SEQ Figure 2: Production Possibilities Frontier
-You and your friend, Terri, work in a bakery.You can produce more cookies and cakes than Terri.This means that

• A)You work harder than Terri
• B)You have a comparative advantage for both cookies and cakes than Terri
• C)You have an absolute advantage for both cookies and cakes than Terri
• D)You have a comparative advantage for cookies and cakes than Terri, but Terri has an absolute advantage for cookies and cakes

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Definitions:

Credits

In accounting, credits are entries that decrease assets or increase liabilities and equity on a company's balance sheet, corresponding to the double-entry bookkeeping system.

Debits

Entries made on the left-hand side of an account record in double-entry bookkeeping, indicating increases in assets or expense accounts, or decreases in liabilities, equity, or revenue accounts.

Account Balance

The amount of money present in a financial account at any given moment, which can be positive (credits) or negative (debits).

Chart of Accounts

An organized list of all the accounts in a company's general ledger, used for recording and reporting financial transactions.