Mary Can Clean 20 Windows Per Hour or Type 30

question 203

Multiple Choice

Mary can clean 20 windows per hour or type 30 pages of paper per hour. Tom can clean 18 windows per hour or he can type 25 pages of paper per hour. Based on this

• A) Mary has comparative advantages in activities.
• B) Tom has comparative advantages in both activities.
• C) Tom has a comparative advantage in cleaning windows.
• D) Mary has a comparative advantage in cleaning windows.

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Definitions:

Liability Insurance Policy

A financial product that provides the insured party with protection against claims resulting from injuries and damage to people and/or property.

Prepaid Expense

Expenses paid in advance for goods or services to be received in the future, recorded as assets on the balance sheet until they are actually consumed.

Insurance Expense

The cost recognized in the accounting period related to the premiums paid for insurance policies.

Retained Earnings

Profits that a company keeps after dividends are paid to shareholders, used for reinvestment in the business or to pay off debt.