Table 3-31 ​

question 354

Multiple Choice

Table 3-31
​
-Refer to Table 3-31. Relative to the rancher, the farmer has

• A)a comparative advantage in the production of meat, because the farmer's opportunity cost of a pound of meat is lower than the rancher's opportunity cost of a pound of meat.
• B)a comparative advantage in the production of potatoes, because the rancher requires less time than the farmer to produce a pound of potatoes.
• C)a comparative advantage in the production of potatoes; relative to the farmer, the rancher has a comparative advantage in the production of meat.
• D)an absolute advantage in the production of both meat and potatoes.

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Definitions:

Share Options

Financial instruments that give the holder the right, but not the obligation, to buy or sell shares of a stock at a set price within a specific period.

Incentive Compensation

A form of remuneration designed to reward employees for achieving certain performance targets or objectives.

Share Market

A venue where stocks, bonds, and other securities are bought and sold between investors.

Employee Share Ownership

Programs that allow employees to own shares or a stake in the company they work for, aiming to align interests and boost motivation.