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:

Specialized Equipment

Machinery or tools designed for a particular purpose or industry, enhancing efficiency and productivity in specific tasks.

Division of Labor

The division of separate components of a manufacturing procedure or task among different individuals for the purpose of increasing efficiency.

Sole Proprietorship

A business structure owned by a single individual, where the owner has unlimited liability.

Corporation

A legal entity created by individuals, shareholders, or shareholders, with rights and liabilities distinct from those of its members, recognized as such under law.