-The Above Table Shows the Tons of Steel and Concrete

question 195

Multiple Choice

$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { U.S. production } \\\text { possibilities }\end{array} & \begin{array} { l } \text { France's production } \\\text { possibilities }\end{array} \\\hline \text { Steel } & 100 & 25 \\\hline \text { Concrete } & 200 & 100 \\\hline\end{array}$$
-The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table,

• A) the United States has a comparative advantage in the production of both goods.
• B) France has an absolute advantage in the production of concrete.
• C) France has a comparative advantage in the production of concrete.
• D) the United States has a comparative advantage in the production of concrete.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Short-Term Debt-Paying

Refers to a company's ability to meet its short-term financial liabilities and obligations.

Acid-Test

A stringent financial ratio that measures the ability of a company to pay off its current liabilities with its most liquid assets (cash, marketable securities, and accounts receivable).

Horizontal Analysis

A financial analysis technique used to evaluate trends over time by comparing line items in financial statements, such as assets, liabilities, and equity, across multiple periods.