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

question 4

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 both an absolute and comparative advantage in painting kites.
• B) April has both an absolute and comparative advantage in painting snowboards.
• C) April has neither an absolute nor comparative advantage in painting kites.
• D) April has neither an absolute nor a comparative advantage in painting snowboards.

---

Definitions:

Residual Value

The estimated salvage value an asset will have at the end of its useful life.

Manufacturing Equipment

Machinery and tools that are used in the process of producing goods in a manufacturing facility.

Salvage Value

Salvage Value is the estimated residual value of an asset at the end of its useful life, expected to be recovered once the asset is no longer useful in operations.

Straight-Line Method

A method of allocating the cost of an asset evenly across its useful life for accounting and depreciation purposes.