Table 2-4 Table 2-4 Shows the Output Per Day of Day

question 106

Multiple Choice

Table 2-4
Table 2-4 shows the output per day of two gardeners,George and Jack.They can either devote their time to mowing lawns or cultivating gardens.
-Refer to Table 2-4.Which of the following statements is true?

• A)Jack has an absolute advantage in both tasks.
• B)George has an absolute advantage in both tasks.
• C)Jack has an absolute advantage in lawn mowing and George in garden cultivating.
• D)Jack has an absolute advantage in garden cultivating and George in lawn mowing.

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Definitions:

Total Asset Turnover

A ratio calculating how effectively a company utilizes its assets to produce sales income.

Return on Equity

A measure of a corporation's profitability, indicated by the amount of net income returned as a percentage of shareholders equity.

Return on Assets

A financial ratio indicating how efficiently a company uses its assets to generate profit.

Equity Multiplier

An equity multiplier is a financial ratio that measures the proportion of a company’s total assets financed by its shareholders' equity, demonstrating the degree of financial leverage being used.