Daily Output of Scotland and Poland

question 123

Multiple Choice

Daily Output of Scotland and Poland

Table 18.1
-Refer to Table 18.1.If Scotland produces and consumes 5 accordions and 40 bagpipes while Poland produces and consumes 25 bagpipes and 100 accordions,then we say that Poland and Scotland are

• A) in autarky.
• B) specializing and trading.
• C) in limited trade.
• D) fully utilizing the benefits of their comparative advantage.

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Definitions:

Cash Dividend

A payment made by a company out of its profits to its shareholders in the form of cash.

Net Income

The final profit amount for a company after subtracting all operational costs and taxes from revenue.

Equity Securities

Financial instruments representing ownership in a corporation, such as stocks, which provide a claim on part of the company's assets and earnings.

Cash Dividends

Distributions from a corporation to its owners, typically in the form of profit payouts.