Table 3-4 -Refer to the Table.If Alberta and Manitoba Trade Based on Manitoba

question 124

Multiple Choice

Table 3-4

-Refer to the table.If Alberta and Manitoba trade based on the principle of comparative advantage,what will be exported

• A)Alberta will export baskets, and Manitoba will export birdhouses.
• B)Alberta will export birdhouses, and Manitoba will export baskets.
• C)Alberta will export neither good, and Manitoba will export both goods.
• D)Alberta will export both goods, and Manitoba will export neither good.

---

Definitions:

Rising prices

A situation in an economy where the general level of prices for goods and services is increasing over a period of time.

Inventory method

A system used by companies to keep track of the quantity and cost of inventory on hand and sold, including methods like FIFO (First In, First Out) and LIFO (Last In, First Out).

Average cost method

An inventory costing method that assigns the average cost of all similar items to the cost of goods sold and to ending inventory.

Periodic system

An inventory accounting system that updates inventory balance and cost of goods sold at the end of an accounting period.