Table 3.2 -Consider Two Individuals, Jesse and April, Who Hand Paint Kites

question 20

Multiple Choice

Table 3.2

-Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.2 shows how much of each good Jesse and April can paint in one hour. Which of the following is true?

• A) April has an absolute advantage in painting kites but not snowboards.
• B) April has an absolute advantage in painting snowboards but not kites.
• C) April has an absolute advantage in painting both goods.
• D) April does not have an absolute advantage in painting either good.

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Definitions:

Depreciable Cost

The total cost of an asset that is subject to depreciation, typically considering its purchase price less any salvage value.

Estimated Useful Life

The expected period over which an asset remains usable to the owner, impacting depreciation calculations and asset management strategies.

Land Purchase

The acquisition of land, an asset, for the purposes of business operation, investment, or development.

Straight-Line Method

A method of calculating depreciation of an asset, where the cost is evenly spread over its useful life.