Table 2-10 Table 2-10 Shows the Output Per Month of Month

question 151

Multiple Choice

Table 2-10
Table 2-10 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2-10. Which of the following statements is true?

• A) Fred has an absolute advantage in making both products.
• B) Barney has an absolute advantage in making both products.
• C) Barney has an absolute advantage in making pogo sticks and Fred in making unicycles.
• D) Barney has an absolute advantage in making unicycles and Fred in making pogo sticks.

---

Definitions:

Fair Value

The estimated market price of an asset or liability in an orderly transaction between market participants at the measurement date.

Unrealized Gains

Increases in the value of an asset that have occurred but have not yet been sold or realized as cash.

Consolidated Financial Statements

Consolidated financial statements are a comprehensive reporting of a parent company and its subsidiaries as one single entity, providing a complete financial performance and position.

Common Shares

Equity securities that represent ownership in a company, giving holders voting rights and a share in the company's profits through dividends.