Table 2-11 Table 2-11 Shows the Number of Labor Hours

question 280

Multiple Choice

Table 2-11
Table 2-11 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.
-Refer to Table 2-11. South Korea has a comparative advantage in the production of

• A) wheat.
• B) digital cameras.
• C) both products.
• D) neither product.

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Definitions:

Personal Income Taxes

Taxes levied on individuals or households based on their total personal income from all sources.

Ability-To-Pay

A tax principle that holds that taxes should be levied on individuals based on their capacity to pay, typically reflected in their income or wealth levels.

Ability-To-Pay Principle

The principle of tax fairness by which those with greater ability to pay a tax should pay more tax.

Ability-To-Pay

A concept in taxation that taxes should be levied according to an individual or entity’s ability to shoulder the tax burden.