Suppose That a Worker in Country a Can Make Either

question 78

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 B has the _______________ advantage in the production of tablets,which means they should specialize in __________________.

• A) comparative; tablets
• B) absolute; tablets
• C) comparative; iPods
• D) absolute; iPods

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Definitions:

LLC

A Limited Liability Company is a business structure in the United States that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Management Rights

The legal and contractual powers that empower an employer to control and direct their workforce and operations.

Capital Contributions

Investments made by owners or shareholders into a company or partnership, increasing the company's equity.

Defendant-Tippee

A term used in securities law referring to a person who receives non-public, material information from an insider (the tipper) and then trades securities based on that information.