If Nation a Can Produce 5 Units of Good X

question 28

Multiple Choice

If nation A can produce 5 units of good X or 10 units of good Y and nation B can produce 4 units of good X or 12 units of good Y we can conclude that nation A has a

• A) Comparative advantage in X and an absolute advantage in Y
• B) Comparative advantage in X and an absolute advantage in X
• C) Comparative advantage in Y and an absolute advantage in X
• D) Comparative advantage in Y and an absolute advantage in Y

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Definitions:

AASB 141

This is the Australian Accounting Standards Board's standard related to Agriculture, providing the accounting requirements for agricultural activity.

IAS 41

International Accounting Standard 41, which governs the accounting for agriculture.

Estimated Costs

Costs that are predicted based on historical data, trends, and analyses, used for budgeting, planning, and decision-making purposes.