Answer the Question(s)below Based on the Information in the Following

question 24

Multiple Choice

Answer the question(s) below based on the information in the following table
Country
$$\begin{array} { | c | c | c | } \hline \text { Goods } & \mathrm { A } & \mathrm { B } \\\hline \mathrm { X } & 3 & 9 \\\hline \mathrm { Y } & 4 & 2 \\\hline\end{array}$$ (numbers indicate hours of labor per unit of output)
-Refer to the table above.If each country were to reduce production of its comparative disadvantage good by 1 unit,world output of wine would rise by

• A)1.5 units.
• B)2 units.
• C)3 units.
• D)3.5 units.

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Definitions:

Financial Basis

Refers to the underlying support or foundation for an economic claim or accounting method, often related to how financial statements are prepared.

Cash Basis

An accounting method in which revenues and expenses are recorded only when cash is received or paid out.

Zero NPV

A situation where the net present value of a project or investment equals zero, indicating that the expected cash flows exactly discount the initial investment, resulting in no net gain or loss.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.