A Husband and Wife Both Work During the Week and Decide

question 35

Multiple Choice

A husband and wife both work during the week and decide that on Saturday morning the inside of the house must be cleaned and the yard must be mowed and weeded.If it takes the husband four hours to clean the house and three hours to do the yard work,and the wife can do either in two hours

• A) the husband has a comparative advantage in yard work.
• B) the husband has a comparative advantage in cleaning.
• C) the wife has a comparative advantage in both tasks.
• D) there would be no gain from specialization since the wife is better at both tasks.
• E) the husband has the comparative advantage in both tasks.

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Definitions:

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Significant Judgements

Decisions made by management in the preparation of financial statements that have a significant impact on the amounts and disclosures in those financial statements, often requiring considerable estimates.

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Financial statements of a group in which the assets, liabilities, equity, income, expenses, and cash flows of the parent company and its subsidiaries are presented as those of a single economic entity.

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