If Resources and Goods Are Free to Move Across States

question 115

Multiple Choice

If resources and goods are free to move across states and if Oregon producers choose to specialize in producing honey while California producers choose to specialize in growing almonds, then we could reasonable conclude that:

• A)​California has a comparative advantage in producing almonds.
• B)​Oregon has a comparative advantage in producing honey.
• C)​the opportunity cost of growing almonds is lower in California than in Oregon.
• D)​all of the above are true.

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Definitions:

Ownership Proportion

The percentage of shares or interest held in an entity, determining the extent of control or influence an owner has over that entity.

AASB 3

The Australian Accounting Standards Board standard that deals with the accounting treatment for business combinations.

Fair Value Method

An accounting strategy that assesses assets or liabilities at their current market value, rather than at historical cost or future projected value.

Proportionate Interest Method

An accounting method used to reflect a company's stake in a joint venture by recognizing only its share of assets, liabilities, income, and expenses in its financial statements.