The Table Given Below Shows the Number of Labor Hours

question 26

Multiple Choice

The table given below shows the number of labor hours required to produce 1 gallon of wine and 1 pound of cheese in the U.S. and France. If the U.S. and France engage in free trade with each other, the international price of wine will lie between _____ and _____. $$\begin{array} { l c c } \hline \text { Labor hours to make: } & \text { In the United States } & \text { In France } \\\hline \text { 1 gallon of wine } & 4.00 & 1.00 \\\text { 1 pourd of cheese } & 1.00 & 2.00 \\\hline\end{array}$$

• A)1 pound of cheese per gallon; 4 pounds of cheese per gallon
• B)0.5 pounds of cheese per gallon; 4 pounds of cheese per gallon
• C)1 pound of cheese per gallon; 2 pounds of cheese per gallon
• D)0.5 pounds of cheese per gallon; 2 pounds of cheese per gallon

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Definitions:

Preauthorized Payment

A financial arrangement that allows a business or individual to automatically debit funds from a customer's bank account for recurring expenses.

Total Collection Time

The period it takes for a business to convert its credit sales into cash, encompassing the entire process from sale to cash collection.

Cash Management

The process of collecting, managing, and investing a company's cash flow in a way that maintains or increases the company's liquidity.

Temporary Excess Cash

Surplus cash not required for immediate operational or investment needs, often invested in short-term securities.