Samoa Could Produce Either 3 Coconuts or 12 Pineapples Per

question 119

Multiple Choice

Samoa could produce either 3 coconuts or 12 pineapples per worker, while Guam could produce either 5 coconuts or 20 pineapples per worker. In this situation:

• A)​if trade occurs, both countries will be able to consume beyond their original production possibilities frontiers.
• B)​Guam will be better off if it exports coconuts and imports pineapples.
• C)​both Samoa and Guam will be better off if Samoa produces both coconuts and pineapples.
• D)​mutually beneficial trade cannot occur.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting principles that establish how transactions and other accounting events should be reported in financial statements on a global scale.

Fair Value

The estimated price at which an asset could be bought or sold in a current transaction between willing parties.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards for financial reporting used in the United States.

Assets Reporting

The process of documenting and disclosing the value and details of a company’s assets in financial statements.