Country a Produces a Ton of Coffee Using One Unit

question 43

Multiple Choice

Country A produces a ton of coffee using one unit of resources.Country B produces two tons of coffee using one unit of resources.Which of the following is true regarding Country A and Country B?

• A) Country A has an absolute advantage in producing coffee.
• B) Country B has an absolute advantage in producing coffee.
• C) Neither Country A nor Country B has an absolute advantage in producing coffee.
• D) Both Country A and Country B have an absolute advantage in producing coffee.

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Definitions:

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping businesses manage their cash flow effectively.

Cash Disbursements

Cash disbursements are the payments a company makes in cash, including expenses, debt payments, and distributions to shareholders.

Variable Selling And Administrative Expense

Costs that vary with sales volume, such as commissions or shipping charges.

Master Budget

A comprehensive financial planning document that includes all of a company's budgets, combining sales, production, and financial aspects to overview performance.