Suppose That a Worker in Country a Can Make Either

question 133

Multiple Choice

Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.Country A has the absolute advantage in the production of:

• A) iPods only.
• B) tablets only.
• C) both iPods and tablets.
• D) neither iPods nor tablets.

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Definitions:

Non-regenerative Resources

Resources that cannot be replenished or renewed after their consumption, such as fossil fuels and minerals.

Full Cost Method

An accounting method used in the oil and gas industry, where all exploration, development, and production expenses are capitalized rather than expensed.

Successful Efforts Method

An accounting approach used in the oil and gas industry where costs are capitalized only if successful in finding hydrocarbons.

Provision

A liability of uncertain timing or amount.