-Use the Above Table

question 254

Multiple Choice

-Use the above table. Assuming constant opportunity costs, if Argentina and France specialize based on comparative advantage, then they will trade if the rate of exchange

• A)is 2.5 gallons of wine for 1 pound of beef, and Argentina imports beef.
• B)4 gallons of wine for 1 pound of beef, and France imports beef.
• C)0.2 pound of beef for 1 gallon of wine, and Argentina imports wine.
• D)8 pounds of beef for 1 gallon of wine, and France imports wine.

---

Definitions:

Accounts Payable

Liabilities or amounts owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the associated costs for a specific period.

Cash Payments

Transactions in which money is paid out or disbursed by a business, typically related to operational expenses, purchases, or other financial obligations.

Raw Materials Inventory

The total cost of all components and materials a company holds that are yet to be used in the manufacturing process.