Use the Following to Answer Question

question 85

Multiple Choice

Use the following to answer question:

-(Table: Comparative Advantage I) Use Table: Comparative Advantage I.Sweden has an absolute advantage in producing:

• A)cell phones only.
• B)herring only.
• C)both cell phones and herring.
• D)neither cell phones nor herring.

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Definitions:

Gain on Sale

Profit realized from the sale of assets or investments when the selling price exceeds the book value.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is becoming the global standard for the preparation of public company financial statements.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in the United States.