The Table Below Shows the Quantities of Rice and Wheat

question 192

Multiple Choice

The table below shows the quantities of rice and wheat that two countries can produce in a year if they specialize in the production of each good.

-Refer to the table above.Which of the following statements is true in this case?

• A) Country X has an absolute advantage in the production of wheat.
• B) Country X has an absolute advantage in the production of rice.
• C) Country Y has a comparative advantage in the production of rice.
• D) Country Y has a comparative advantage in the production of wheat.

Understand the concepts of direct and indirect quotes in the currency exchange process.

Analyze the effects of currency strength on forward and spot rates.

Calculate the quantity of currency that can be exchanged or purchased given an exchange rate.

Determine financial outcomes from currency exchange rate movements in international business transactions.

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Total Income

The sum of all revenue and gains a company or individual earns within a specific period, including sales, interest, and dividends.

Net Cash Flows

The difference between a company's cash inflows and outflows over a specific period.

Payback Period

The period of time required for an investment to generate cash flows sufficient to recover its initial cost.