-In Table 17.4

question 27

Multiple Choice

-In Table 17.4

• A)the United States has an absolute advantage in both goods but a comparative advantage in cars only.
• B)Brazil has an absolute advantage in both goods but a comparative advantage in lumber only.
• C)the United States has an absolute and comparative advantage in Cars while Brazil has an absolute and comparative advantage in lumber.
• D)the United States has an absolute and comparative advantage in both goods.

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Definitions:

Company Check

A check written from a company's account, representing an official payment by the company to another party.

Deposits in Transit

Funds that have been deposited by a company but have not yet been recorded by the bank.

Recorded

The process of documenting financial transactions in the accounting records of an organization.

Bank

A financial institution licensed to receive deposits, offer loans, and provide various other financial services, such as currency exchange and wealth management.