Table 3-8 Assume That Huang and Min Can Switch Between Producing Parasols

question 133

Multiple Choice

Table 3-8
Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate.

-Refer to Table 3-8.Min has an absolute advantage in the production of

• A) plates and a comparative advantage in the production of plates.
• B) parasols and a comparative advantage in the production of plates.
• C) neither good and a comparative advantage in the production of parasols.
• D) neither good and a comparative advantage in the production of plates.

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Definitions:

Physical Flow

This term refers to the actual movement of goods in and out of a warehouse or production facility.

Fiscal Year

A 12-month period used for calculating annual financial statements in businesses and other organizations, differing from the calendar year.

Specific Identification

An inventory costing method where the cost of each specific item in inventory is identified and assigned to that item.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.