Examlex

Solved

Table 3-22 Assume That Zimbabwe and Portugal Can Switch Between Producing Toothbrushes

question 178

Multiple Choice

Table 3-22
Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. Table 3-22 Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate.   -Refer to Table 3-22. Zimbabwe has an absolute advantage in the production of A) toothbrushes and a comparative advantage in the production of toothbrushes. B) toothbrushes and a comparative advantage in the production of hairbrushes. C) hairbrushes and a comparative advantage in the production of toothbrushes. D) hairbrushes and a comparative advantage in the production of hairbrushes.
-Refer to Table 3-22. Zimbabwe has an absolute advantage in the production of


Definitions:

Investment

The allocation of resources, usually financial, in expectation of future returns.

Inventory

The total amount of goods and materials held by a business, intended for sale or used in production.

Inventory Investment

The purchase of goods and materials for future sale or use, regarded as a form of investment by a company.

GDP

Gross Domestic Product, which measures the total value of all goods and services produced within a country’s borders in a specific time period.

Related Questions