(Table) Looking at the Data for Tom and Joe, What

question 69

Multiple Choice

(Table) Looking at the data for Tom and Joe, what specialization pattern will exist if trade is based on comparative advantage? $$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Hours to Produce a } \\\text { Shirt }\end{array} & \begin{array} { l } \text { Hours to Produce } \\\text { a Cake }\end{array} \\\hline \text { Tom } & 5 & 3 \\\hline \text { Joe } & 6 & 4 \\\hline\end{array}$$

• A) Tom will specialize in shirts and Joe will specialize in cakes.
• B) Tom will specialize in cakes and Joe will specialize in shirts.
• C) Tom will specialize in both cakes and shirts.
• D) Joe will specialize in both cakes and shirts.

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Definitions:

Maturity Date

Due date of the promissory note.

Dividends

Payments made by a corporation to its shareholders, often as a distribution of profits.

Taxable

Refers to income, goods, or services subject to tax according to the laws of the taxing jurisdiction.

Stockholders

Individuals or entities that own shares in a corporation, asserting partial ownership and potentially receiving dividends.