Table 3-6 -Refer to Table 3-6

question 51

Multiple Choice

Table 3-6 $$\begin{array} { c c c c c } &&& { \text { Labor Hours Needed to } } &&&& { \text { Amount } } \\&&& { \text { Make 1 Pound of } } &&&& \text { Produced in } 40 \text { hours } \\\hline\end{array}$$
$$\begin{array} { c c c c c } & \text { Meat } & \text { Potatoes } & \text { Meat } & \text { Potatoes } \\\hline \text { Farmer A } & 8 \text { hours/pound } & 5 \text { hours/pound } & 5 \text { pounds } & 8 \text { pounds } \\\text { Farmer B } & 4 \text { hours/pound } & 10 \text { hours/pound } & 10 \text { pounds } & 4 \text { pounds }\end{array}$$
-Refer to Table 3-6.Relative to farmer A,farmer B rancher has an absolute advantage in the production of

• A)meat,but not in the production of potatoes.
• B)potatoes,but not in the production of meat.
• C)both meat and potatoes.
• D)neither meat nor potatoes.

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Definitions:

Equity Financing

The method of raising capital through the sale of shares in a company, which gives shareholders ownership rights.

Shareholders

Individuals or entities that own shares in a corporation, giving them a part of the ownership of the company and potentially a claim on part of its assets and earnings.

Municipal Bond

A debt security issued by municipalities to finance their capital expenditures, typically tax-exempt for investors.

Government Bonds

Securities issued by a government to finance its expenditures, offering a fixed interest rate over a certain period.