Figure 16-6 -According to Figure 16-6,all of the Following Statements Are Correct

question 72

Multiple Choice

Figure 16-6

-According to Figure 16-6,all of the following statements are correct except

• A)Chile has the absolute advantage in the production of bicycles
• B)Chile has the comparative advantage in the production of bicycles
• C)India has the comparative advantage in the production of bicycles
• D)India has the absolute advantage in the production of wagons
• E)India has the comparative advantage in the production of wagons

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Definitions:

Benefits Principle

A taxation principle that states those who benefit from government services should pay in proportion to the amount they benefit.

Taxation

The system through which governments impose financial charges on citizens or corporates to fund public spending.

Tax Incidence

The study of the effect of a particular tax on the distribution of economic welfare, focusing on who ultimately pays the tax (the burden of the tax).

Consumers

Individuals or groups that purchase goods and services for personal use and are the end users in the distribution chain.