If the USEnjoys an Absolute Advantage in Agriculture Compared to Every Other

question 267

Multiple Choice

If the U.S.enjoys an absolute advantage in agriculture compared to every other country in the world,then

• A)agricultural production will take place only in the U.S.
• B)the U.S.necessarily has a comparative advantage in agriculture.
• C)the U.S.may or may not have a comparative advantage in agriculture.
• D)the U.S.necessarily does not have a comparative advantage in agriculture.

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Definitions:

Step-down Method

A cost allocation method used in accounting to distribute overhead costs to various departments or products.

Machine Hours

The total number of hours that machinery is operational during a certain period.

Number Of Employees

A count of all individuals working for a company, including both full-time and part-time staff.

Step-down Method

A cost allocation method used in managerial accounting to allocate overhead costs from service departments to producing departments.