(Figure: Ships and Autos in Countries a and B) Two

question 141

Multiple Choice

(Figure: Ships and Autos in Countries A and B) Two countries manufacture autos and ships. Based on the graphs

• A) Country A should specialize in automotive manufacturing and country B should specialize in ship building.
• B) There are no advantages to trade because country A can produce more of both goods.
• C) There are no advantages to trade because the lines are downward sloping.
• D) Country A should specialize in ship building and country B should specialize in automotive manufacturing.

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Definitions:

Adjusting Entry

Accounting entries recorded at the close of an accounting cycle to distribute expenses and revenues to the period they truly belong to.

Consulting Services

Professional advisory services provided to businesses and organizations to improve operations, strategy, and financial performance.

Profit Margin Ratio

A measure of a company's profitability, represented by net income divided by revenue, indicating the percentage of each dollar of revenue that results in profit.

Net Income

The income a business retains following the deduction of all expenses, taxes, and costs from its overall revenue.