The Data in the Table Below Assumes That with the Same

question 32

Multiple Choice

The data in the table below assumes that with the same quantity of resources,both Australia and Philippines produces food and computers.Australia can make 1,000 computers or 2,000 units of food in a day,and the Philippines can make 200 computers or 1,200 units of food in a day. Table 20.2
- According to Table 20.2,Australia has:

• A)a comparative disadvantage in the production of both food and computers.
• B)a comparative advantage in the production of computers.
• C)a comparative disadvantage in the production of computers.
• D)a comparative advantage in the production of food.
• E)a comparative advantage in the production of both food and computers.

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Definitions:

Straight-Line Method

A method of allocating the cost of a tangible asset over its useful life in equal periodic amounts.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, making it the simplest form of depreciation.

Residual Value

The projected worth of an asset upon reaching the conclusion of its operational lifespan.

Impaired Goodwill

A situation where the value of goodwill on the balance sheet exceeds its fair value, indicating that it has lost some or all of its value.