Table 171 -Refer to Table 17

question 72

Multiple Choice

Table 17.1
$$\begin{array}{l}\text { Table } 17.1\\\begin{array} { | c | c | c | c | } \hline{ \text { Cambria } } & & { \text { Bodoni } } \\\hline \begin{array} { c } \text { Tons of rice per } \\\text { day }\end{array} & \text { T-shirts per day } & \begin{array} { c } \text { Tons of rice per } \\\text { day }\end{array} & \text { T-shirts per day } \\\hline 20 & 0 & 100 & 0 \\\hline 18 & 80 & 90 & 100 \\\hline 16 & 160 & 80 & 200 \\\hline 14 & 240 & 70 & 300 \\\hline 12 & 320 & 60 & 400 \\\hline 10 & 400 & 50 & 500 \\\hline 8 & 480 & 40 & 600 \\\hline 6 & 560 & 30 & 700 \\\hline 4 & 640 & 20 & 800 \\\hline 2 & 720 & 10 & 900 \\\hline 0 & 800 & 0 & 1,000 \\\hline\end{array}\end{array}$$
-Refer to Table 17.1, which shows per-day production data of rice and T-shirts for two countries, Cambria and Bodoni. Which of the following is true in such a case?

• A) Bodoni has an absolute advantage in the production of both rice and T-shirts.
• B) Bodoni has an absolute advantage in the production of rice only.
• C) Bodoni has an absolute advantage in the production of T-shirts only.
• D) Cambria has an absolute advantage in the production of both rice and T-shirts.
• E) Cambria has an absolute advantage in the production of T-shirts only.

---

Definitions:

Compound Semi-Annually

Interest on an investment or loan is calculated twice a year, with each calculation adding the accrued interest to the principal for future interest computation.

Strip Bond

A debt security that has had its main components, such as periodic interest payments, separated, leaving only the principal to be repaid at maturity.

Discount Rate

The interest rate charged by central banks to commercial banks for loans and advances, influencing monetary policy and overall economy.

Compounded Semi-Annually

Interest calculation method where interest is added to the principal twice a year, leading to interest on interest.