Table 18-1 -From Table 18-1, the United States
A) Has an Absolute

question 166

Multiple Choice

Table 18-1
$\begin{array}{r}\text { Alternate Outputs from One Day's Labor Input }\\\begin{array}{lll}& \text { Wheat } \quad\quad\quad\quad&& \text { Textiles } \quad\quad\quad\quad\\\hline \text { United States } \\ \text { (One person's/day's labor) } \quad\quad\quad& \text {12 bushels } & \text { or } & \text {3 yards } \\\\ \text { Great Britain } \\ \text { (One person's/day's labor) } & \text { 3 bushels } & \text { or } & \text {12 yards } \\\end{array}\end{array}$

-From Table 18-1, the United States

• A) has an absolute advantage over Great Britain in the production of textiles.
• B) has an absolute advantage over Great Britain in the production of wheat.
• C) has a comparative advantage in the production of textiles.
• D) should export textiles to Great Britain.

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Definitions:

Possession

The act or state of owning, controlling, or having an item or property in one's physical custody.

Exclusive Use

A clause in a lease or agreement granting one party the sole right to use a property, asset, or service in a specified way.

Rent Escalation Clause

In a lease, a clause that permits the landlord to increase the rent in association with increases in costs of living, property taxes, or the tenant’s commercial business.

Long-Term Leases

Lease agreements that extend for a long period, often exceeding a year, typically used for real estate and heavy equipment.