Use the Following Scenario to Answer the Following Questions

question 93

Multiple Choice

Use the following scenario to answer the following questions:
Raven and Drew produce baseballs and golf balls.Raven can produce six baseballs per hour or four golf balls per hour.Drew can produce three baseballs per hour or one golf ball per hour.
-Based on the scenario,Raven has

• A) an absolute advantage in producing baseballs,but not golf balls.
• B) an absolute advantage in producing golf balls,but not baseballs.
• C) an absolute advantage in producing both goods.
• D) an absolute advantage in producing neither good.
• E) no comparative advantage.

Comprehend the role of household savings in firm investments.

Identify the interaction between savers and investors through financial intermediaries.

Understand the differences between dividends and payments made to bondholders.

Know the definitions and types of payments in financial markets, including interest, credit, and capital.

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Definitions:

Planning and Control

Processes used by management to establish objectives, execute plans to meet those objectives, and monitor progress.

Responsibility Accounting

An accounting system that collects, summarizes, and reports financial information about different areas of responsibility within an organization.

Responsibility Centers

Divisions or units within an organization for which managers are accountable for certain activities or financial outcomes.

Management by Exception

A management strategy where only significant deviations from expected outcomes are addressed, focusing leaders' attention on the most important issues.