Table 18-3 -The Data in Table 18-3 Indicate That the United States

question 216

Multiple Choice

Table 18-3
$\begin{array}{r}\text { Output Per Unit Labor Input }\\\begin{array}{lcc}& \underline {\text { Cotton }}& \underline {\text { Wheat}}\\\text { Egypt} \quad\quad\quad& \quad \quad20\quad\quad & \quad\quad24\quad\quad \\\text { United States } & \quad \quad2\quad\quad &\quad\quad 12\quad\quad \\\end{array}\end{array}$

-The data in Table 18-3 indicate that the United States has

• A) an absolute advantage in both goods, and a comparative advantage in cotton.
• B) an absolute advantage in both goods, and a comparative advantage in wheat.
• C) only a comparative advantage in wheat.
• D) only a comparative advantage in cotton.

---

Definitions:

Consumable Items

Items that are intended to be used up and replaced in a short period of time, often part of operating supplies.

Expired Costs

Costs that have been incurred and cannot be recovered, often through the consumption of goods or by providing services in a given period.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Comprehensive Income

Total change in equity for a reporting period that includes all non-owner changes in equity, not just those resulting from net income.