If 50 Units of Resources Can Produce Either 1 Ton

question 118

Multiple Choice

If 50 units of resources can produce either 1 ton of sugar beets or 100 lb.of ham in Germany,while 90 units of resources can produce either 2 tons of sugar beets or 300 lb.of ham in Poland,

• A)Poland has a comparative advantage in producing both goods
• B)Germany has a comparative advantage in producing sugar beets
• C)neither country has an absolute advantage in producing sugar beets,but Poland has an absolute advantage in producing ham
• D)Germany can produce more ham than Poland can
• E)mutually beneficial international trade is not possible

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Definitions:

Return on Investment

A financial ratio used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Investment Centres

Business segments or units within an organization that are responsible for their own revenues, expenses, and asset investments.

Performance Evaluation

The systematic assessment of an employee, process, or organization's performance, usually against set objectives or criteria.

Return on Equity

A measure of financial performance calculated by dividing net income by shareholder equity, indicating how efficiently a company uses its equity to generate profit.