Table 7-1 Rob Crusoe and Bill Friday Spent Their Week-Long

question 156

Multiple Choice

Table 7-1
Rob Crusoe and Bill Friday spent their week-long vacation on a desert island where they had to find and prepare their own food.Rob and Bill spent one day each fishing and picking berries.The table lists the pounds of output Rob and Bill produced.
-Refer to Table 7-1.Use the table above to select the statement that accurately interprets the data in the table.

• A)Rob has a comparative advantage in catching fish.
• B)Bill has an absolute advantage in catching fish.
• C)Bill has a comparative advantage in catching fish.
• D)Rob has a comparative advantage in picking berries and catching fish.

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Definitions:

Selling Expenses

Costs incurred directly in the selling of goods and services, such as salaries of sales staff, advertising, and store display.

Cost of Merchandise Sold

The total expense incurred to purchase or produce the goods that have been sold during a particular period.

Credit Terms

The conditions under which credit is extended by a seller to a buyer, including repayment schedule, interest rates, and due dates.

Discount Period

A set time frame during which a buyer can pay less than the full amount due, usually as incentive for early payment to the seller.