The Table Below Shows the Bushels of Wheat and the Bottles

question 78

Multiple Choice

The table below shows the bushels of wheat and the bottles of beer that North and South Dakota can produce per day of labor under two different hypothetical situations (Cases I and II) . $$\begin{array} { | l | c | c | c | c | } \hline & { \text { Case I } } && { \text { Case II } } \\\hline & \text { South Dakota } & \text { North Dakota } & \text { South Dakota } & \text { North Dakota } \\\hline \text { Wheat (bushels) } & 4 & 1 & 3 & 1 \\\hline \text { Beer bottles) } & 1 & 2 & 4 & 2 \\\hline\end{array}$$ Which state has an absolute advantage in producing wheat in Case I?

• A)South Dakota
• B)North Dakota
• C)Neither state
• D)Both states

---

Definitions:

Cash Flows

Incoming and outgoing cash movements in a business or project, crucial for understanding its liquidity and operational efficiency.

Target Cash Balance

The optimal amount of cash that a company aims to hold at any given time to fulfill operational and transactional requirements.

Interest Rate

The fraction of a loan subject to interest charges for the borrower, commonly stated as an annual percentage of the outstanding loan balance.

BAT Model

Stands for Behavioral Adjustment Tax, a concept in economic theories but without a standard definition; alternatively, it may refer to niche or specific theoretical models not widely recognized in mainstream economics.