Use the Following Scenario to Answer the Following Questions

question 144

Multiple Choice

Use the following scenario to answer the following questions:
Rosa and Dirk produce basketballs and footballs.Rosa can produce six basketballs per hour or two footballs per hour.Dirk can produce three basketballs per hour or four footballs per hour.
-Based on the scenario,which of the following is true?

• A) Rosa has both an absolute and a comparative advantage in basketball production.
• B) Rosa has both an absolute and a comparative advantage in football production.
• C) Rosa has neither an absolute nor a comparative advantage in basketball production.
• D) Rosa has neither an absolute nor a comparative advantage in football production.
• E) Dirk has both an absolute and a comparative advantage in basketball production.

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Definitions:

Financial Statement

Formal records that outline the financial activities and condition of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Objectivity Concept

An accounting principle that requires financial and accounting information to be independent and based on measurable and verifiable data.

Unit of Measure

A standard quantity used to express a physical quantity, ensuring uniformity in the reporting of financial and operational data.

Business Entity Concept

An accounting principle that treats a business as separate from its owners or shareholders for financial reporting purposes.