Table 3-23 Assume That the Farmer and the Rancher Can Switch Between

question 434

Multiple Choice

Table 3-23
Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate.
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-Refer to Table 3-23. The rancher has a comparative advantage in the production of

• A)pork.
• B)tomatoes.
• C)both goods.
• D)neither good.

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Definitions:

Net Income

The total profit (or loss) after all expenses, including taxes, have been deducted from revenue; also called net earnings.

Double-Entry Bookkeeping

A system of recording and classifying business transactions that maintains the balance of the accounting equation.