Use the Following to Answer Questions

question 64

Multiple Choice

Use the following to answer questions:
Figure: Rice and Shirts
-(Figure: Rice and Shirts) Use the PPFs shown for the United States and India. With specialization and trade, the United States would produce ________ and India would produce _________.

• A) 50 pounds of rice and 0 shirts; 0 pounds of rice and 35 shirts
• B) 30 pounds of rice and 16 shirts; 11.4 pounds of rice and 15 shirts
• C) 0 pounds of rice and 40 shirts; 20 pounds of rice and 0 shirts
• D) 50 pounds of rice and 40 shirts; 20 pounds of rice and 35 shirts

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Definitions:

Net Income

The net income is the final amount of profit a company makes after deducting all costs, taxes, and expenses from its total revenue.

Capital Balances

The amount of money that owners have invested in a firm plus any retained earnings or minus any losses.

Income Ratio

A metric used to assess the profitability of a company, often calculated as net income divided by total revenues or sales.

Unlimited Life

An accounting concept referring to corporations that continue to exist irrespective of the status or continuity of their owners.