The Following Table Shows the Units of Output a Worker

question 33

Multiple Choice

The following table shows the units of output a worker can produce per month in country A and country B. Country Which of the following statements about absolute advantage is true?

• A) Country A has the absolute advantage in the production of food while country B has the absolute advantage in the production of electronics.
• B) Country A has the absolute advantage in the production of both food and electronics.
• C) Country B has the absolute advantage in the production of both food and electronics.
• D) All of these.

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Definitions:

Liabilities

Liabilities are financial obligations or debts that a company owes to others, including loans, accounts payable, mortgages, and other forms of owed money.

Installment Note

A debt instrument that requires regular payments of principal and interest over a set period.

Fiscal Year

A 12-month cycle utilized by corporations and governmental bodies for the purposes of financial statements and budget planning, not always coinciding with the January to December calendar year.

Principal Repayment

The process of paying back the original amount of money borrowed, excluding interest or other charges.