Table 18.2 -Consider Two Individuals, Jesse and April, Who Hand Paint Kites

question 124

Multiple Choice

Table 18.2
-Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 18.2 shows how much of each good Jesse and April can paint in one hour. Which of the following is TRUE?

• A) April has both an absolute and comparative advantage in painting kites.
• B) April has both an absolute and comparative advantage in painting snowboards.
• C) April has neither an absolute nor comparative advantage in painting kites.
• D) April has neither an absolute nor a comparative advantage in painting snowboards.

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Definitions:

Uses of Cash

Refers to the various ways in which a business or individual applies its cash resources, including operational expenses, investment activities, and financing costs.

Net Cash Flows

The difference between a company's cash inflows and outflows in a given period.

Operating Activities

Business actions that are directly related to the production, sale, and delivery of goods and services.

Notes Payable

Written promises to pay a certain amount of money, usually with interest, by a specified future date, recorded as liabilities on a balance sheet.