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:

Financial Management

The strategic planning, organizing, directing, and controlling of financial undertakings in an organization or an institute.

Initial Capital Requirements

The amount of funds required to start a business, covering costs such as land, buildings, equipment, inventory, and working capital.

Assets

Any resource that a business owns and expects to use to its benefit.

Borrowed Funds

Funds obtained through loans or credit, not from direct earnings or investments.