Table 3-2 -According to Table 3-2:
A)Lee Has an Absolute Advantage in unit

question 126

Multiple Choice

Table 3-2
$\begin{array}{|c|c|c|c|c|}\hline&\text { Labour hours needed to produce one unit of: }&&\text { Amount produced in } 60 \text { hours: }\\\hline & \text { Butter (kg) } & \text { Butter (kg } & \text { Rice (kg) } & \text { Rice (kg) } \\\hline \text { Lee } & 6 & 10 & 15 & 4 \\\hline \text { John } & 3 & 20 & 15 & 4\\\hline\end{array}$
-According to Table 3-2:

• A)Lee has an absolute advantage in neither goods, and John has an absolute advantage in both goods
• B)Lee has an absolute advantage in neither goods, and John has an absolute advantage in butter
• C)Lee has an absolute advantage in rice, and John has an absolute advantage in butter
• D)Lee has an absolute advantage in rice, and John has an absolute advantage in both goods

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Definitions:

Income Tax Expense

The cost to a company for income taxes owed to federal, state, and local governments, recorded as a financial expense in accounting.

Federal Income Taxes

Taxes levied by the federal government on annual income earned by individuals, corporations, trusts, and other legal entities.

State Income Taxes

Taxes imposed by individual states on the income earned by individuals and entities within their jurisdiction.

Cash Payment

A transaction where a payment for goods or services is made using physical currency or through a bank transfer.