Suppose That a Worker in Country a Can Make Either

question 26

Multiple Choice

Suppose that a worker in Country A can make either 10 iPhones or 5 iPads each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPhones or 10 iPads each year. Country B has 200 workers. Country B has a(n) _____ advantage at producing iPads, which means it should specialize in _____.

• A) comparative; iPads
• B) absolute; iPads
• C) comparative; iPhones
• D) absolute; iPhones

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Definitions:

Professional Corporation

A business structure that allows licensed professionals to offer their services while enjoying certain legal and tax advantages.

Liable

Having legal responsibility or obligation, often used in the context of owing money or being responsible for specific actions or outcomes.

Malpractice

Professional misconduct or failure to exercise adequate skill, leading to loss or injury to a patient or client.

State Corporate Laws

These are laws specific to a particular state within the United States that govern the formation, operation, and dissolution of corporations within that state.