​Table 3-38 -​Refer to Table 3-38. Iowa and Nebraska Can Both Produce

question 16

Multiple Choice

​Table 3-38
-​Refer to Table 3-38. Iowa and Nebraska can both produce corn and soybeans, and can switch between the production of corn and soybeans at a constant rate. The table illustrates the amount of corn or soybeans each state can produce in one growing season. From the table we know that Nebraska has a

• A)​comparative advantage in the production of soybeans and Iowa has a comparative advantage in the production of corn.
• B)​comparative advantage in the production of corn and Iowa has a comparative advantage in the production of soybeans.
• C)​comparative advantage in both goods and Iowa has a comparative advantage in neither good.
• D)​comparative advantage in neither good and Iowa has a comparative advantage in both goods.

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Definitions:

Average Account Receivables

The average amount of money owed to a company by its customers for goods or services delivered on credit.

Allowance Method

An accounting technique that estimates uncollectible accounts receivable as an expense, reducing the accounts receivable balance.

Outstanding Accounts Receivable

The amount of money owed to a company by its customers for goods or services delivered but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that is expected to become uncollectible.