-The Data in Table 22-3 Indicate That the United States

question 57

Multiple Choice

 

-The data in Table 22-3 indicate that the United States has

• A)an absolute advantage in both goods, and a comparative advantage in cotton.
• B)an absolute advantage in both goods, and a comparative advantage in wheat.
• C)only a comparative advantage in wheat.
• D)only a comparative advantage in cotton.

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Definitions:

Useful Life

The estimated time period that an asset is expected to be usable by an entity, with reasonable efficiency, for the purpose for which it was acquired.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, which typically includes the balance sheet, income statement, and cash flow statement.

Not-for-profit Organizations

Entities that operate for purposes other than generating profit, focusing instead on public or social objectives.

External Reporting

refers to the process of preparing and disclosing financial statements and other information to outside users such as investors, creditors, and regulatory agencies.