This Table Shows How Much Wine and Cheese Can Be

question 44

Multiple Choice

This table shows how much wine and cheese can be produced in Spain and Portugal with one unit of equivalent resources.Initially there is no trade.Once trade opens up,transportation costs are assumed to be zero.
TABLE 32-5
-Refer to Table 32-5.Once Spain and Portugal begin to trade cheese and wine,

• A)some resources will be permanently unemployed in Portugal.
• B)it will be beneficial for Portugal to ban the import of cheese.
• C)it will be beneficial for Spain to ban the import of wine.
• D)the opportunity cost of the goods they now import will be less than when there was no trade,but for Portugal only.
• E)the opportunity cost of the goods they now import will be less than when there was no trade,for both countries.

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Definitions:

General Ledger

The master set of accounts that summarizes all transactions occurring within an entity, serving as the main accounting record.

Journal Entry

A record in accounting that notes the details of a financial transaction as it happens.

Stockholders' Equity

Represents the residual interest in the assets of a corporation after deducting liabilities. It typically includes common stock, preferred stock, retained earnings, and treasury stock.

Balance Sheet

A report detailing a corporation's assets, liabilities, and equity of its shareholders at a certain moment.