Which of the Following Statements Is True for the Two

question 106

Multiple Choice

Which of the following statements is true for the two countries illustrated in Figure 35.1?

• A)Japan has an absolute advantage in motorcycles.
• B)The United States has a comparative advantage in DVD players.
• C)Japan has an absolute advantage in motorcycles,the United States in DVD players.
• D)The United States has a comparative advantage in motorcycles,Japan in DVD players.

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Definitions:

Positive Net Income

A financial situation where revenues exceed expenses, resulting in a net profit.

Not Taxed

A classification for income or transactions that are exempt from taxation.

Distributions

In financial contexts, distributions refer to payments made by a fund, account, or security to its shareholders or unit holders, which could include interest payments, dividends, or returns of capital.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.