The Table Below Shows Units of Wheat and Cloth Produced

question 91

Multiple Choice

The table below shows units of wheat and cloth produced by each worker per day in both the countries.Table 20.1

-If Japan has a comparative advantage over Canada in the production of computers, which of the following must be true?

• A)Supply of unskilled labor in Japan is higher than that in Canada.
• B)Japan incurs a lower input cost in the production of computers.
• C)Japan incurs a higher input cost in the production of computers.
• D)Japan has a lower opportunity cost in the production of computers.
• E)Japan has a higher opportunity cost in the production of computers.

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Definitions:

EIN

An Employer Identification Number, issued by the IRS, used for identifying a business entity and for tax filing purposes.

Form SS-4

The form filled out by an employer to get an EIN. The form is sent to the IRS, which assigns the number to the business.

Payroll Tax Expense

Tax that a business must pay based on the wages and salaries of its employees, including social security, Medicare, and unemployment taxes.

FICA

The Federal Insurance Contributions Act, which funds Social Security and Medicare, requiring employers and employees to pay a percentage of earnings.