Table 3-2 -Refer to Table 3-2. Which of the Following Is Correct

question 117

Multiple Choice

Table 3-2

-Refer to Table 3-2. Which of the following is correct?

• A)The Rancher has a comparative advantage in neither good, and the Farmer has a comparative advantage in both goods.
• B)The Rancher has a comparative advantage in both goods, and the Farmer has a comparative advantage in neither good.
• C)The Rancher has a comparative advantage in meat, and the Farmer has a comparative advantage in potatoes.
• D)The Rancher has a comparative advantage in potatoes, and the Farmer has a comparative advantage in meat.

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Definitions:

Journal

A book or electronic record where all transactions are recorded in chronological order.

Chronological Record

A documentation method in which events or transactions are recorded in the order that they occurred.

Assets

Resources owned by a company that have economic value and can be converted into cash.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.