Suppose That, Given the Same Number of Workers, the United

question 9

Multiple Choice

Suppose that, given the same number of workers, the United States can produce five times as many computers or ten times as many airplanes as Mexico. Which of the following statements is true?

• A) The United States has an absolute advantage at producing computers and Mexico has an absolute advantage at producing airplanes.
• B) The United States has an absolute advantage at producing airplanes and Mexico has an absolute advantage at producing computers.
• C) The United States has an absolute advantage at producing both airplanes and computers.
• D) Mexico has an absolute advantage at producing both airplanes and computers.

Recognize the importance of considering depreciation and tax impacts in cash flow estimation.

Distinguish between relevant and irrelevant costs in project evaluation, including understanding sunk and opportunity costs.

Identify the elements necessary for initial outlay and working capital considerations in project analysis.

Comprehend the application of basic capital budgeting principles, such as the treatment of financing costs and tax implications.

---

Definitions:

Technology Based Information Systems

Systems that employ technology for collecting, processing, storing, and distributing information, facilitating various organizational functions.

Accounting

The systematic process of recording, measuring, and communicating information about financial transactions.