Table 3-28 Barb and Jim Run a Business That Sets Up and Up

question 529

Multiple Choice

Table 3-28
Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies.
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-Refer to Table 3-28. Jim has an absolute advantage in

• A)both setting up and testing computers and a comparative advantage in setting up computers.
• B)both setting up and testing computers and a comparative advantage in testing computers.
• C)neither setting up nor testing computers and a comparative advantage in setting up computers.
• D)neither setting up nor testing computers and a comparative advantage in testing computers.

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Definitions:

Treasury Stock

Shares that were issued by a company and later reacquired. These shares do not pay dividends or have voting rights while held by the company.

Authorized Shares

Authorized shares are the maximum number of shares that a corporation is legally permitted to issue, as specified in its corporate charter.