Given the Following Ricardo-Type Table Showing the Amount of Labor

question 13

Multiple Choice

Given the following Ricardo-type table showing the amount of labor input required to produce one unit of output of each of the two goods in each of the two countries:
$\begin{array}{lll}&\underline{\text { Shirts }}&\underline{\text { Machines }}\\\text { France } & 3 \text { days } & 5 \text { days } \\\text { Germany } & 2 \text { days } & 4 \text { days }\end{array}$

If the wage rate in France is €60 per day (i.e., 60 euros per day) , what is the upper limit to the wage rate per day in Germany (which also uses the euro) that is compatible with two-way trade between the countries?

• A) €40
• B) €48
• C) €75
• D) €90

Identify the advantages of specific inventory valuation methods under various economic conditions.

Understand the concept and significance of productive and non-productive assets.

Comprehend the components and calculation of the cost of goods sold.

Calculate and analyze gross profit/margin from given financial data.

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Definitions:

Adjusted Cash Balance

The cash amount shown on a company's books after adjustments have been made for checks written or deposits in transit.

Check Register

A record kept by an account holder of checks written and deposits made into their checking account.

Outstanding Deposits

Funds that have been deposited but not yet credited to the depositor's account or cleared by the bank.

Outstanding Checks

Unprocessed checks that have been written and deducted from an account's balance but not yet presented for payment or cleared.