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

question 24

Multiple Choice

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 and Portugal would not be able to gain from trade if Zimbabwe's opportunity cost of one toothbrush changed to

• A)0 hairbrushes.
• B)5/6 hairbrushes.
• C)6/5 hairbrushes.
• D)Zimbabwe and Portugal can always gain from trade regardless of their opportunity costs.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, often referred to as shareholders' equity or owners' equity.

Public Markets

Marketplaces that are open to the public where securities, commodities, and other financial instruments are traded.

Market Value

The contemporary pricing for transactions involving assets or services on the market.

Stock Split

A corporate action that increases the number of a company's outstanding shares by issuing more shares to current shareholders, thus reducing the price of each share.