Refer to the Figure Below

question 79

Multiple Choice

Refer to the figure below.If Pat and Chris were to specialize in the task in which each has a comparative advantage:

• A)Chris would plant bulbs and Pat would remove trash.
• B)Chris would remove trash and Pat would plant bulbs.
• C)Pat and Chris would each spend half of their time each task.
• D)both Pat and Chris would plant bulbs because they both have an absolute advantage in that task.

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Definitions:

Dividend Tax Credit

Tax formula that reduces the effective tax rate on dividends.

Canadian Corporations

Companies incorporated under the laws of Canada, subject to Canadian corporate regulations and taxation.

Cash Flow To Creditors

A firm’s interest payments to creditors less net new borrowings.

Long-Term Loan

A type of financing that is paid back over an extended time frame, extending beyond one year.