Use the Following to Answer Questions

question 50

Multiple Choice

Use the following to answer questions:
Figure: Steel and Lumber
-(Figure: Steel and Lumber) In the PPF diagram, the United States has a comparative advantage in ______ and an absolute advantage in ______.

• A) both goods; both goods
• B) steel; lumber
• C) steel; both goods
• D) lumber; steel

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the company.

Dividends

A distribution of a portion of a company's earnings to its shareholders, usually determined by the board of directors.

Operating Activities

Cash flows directly related to the production and delivery of a company's goods and services.

Direct Method

A method of reporting the cash flows from operating activities as the difference between the operating cash receipts and the operating cash payments.