Table 2-3 Table 2-3 Shows the Output Per Day of Two Gardeners

question 25

Multiple Choice

Table 2-3

Table 2-3 shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens.
-Refer to Table 2-3.Which of the following statements is true?

• A) Jack has a comparative advantage in both tasks.
• B) George has a comparative advantage in both tasks.
• C) Jack has a comparative advantage in lawn mowing and George in garden cultivating.
• D) Jack has a comparative advantage in garden cultivating and George in lawn mowing.

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Definitions:

FIFO Valuation

A method of inventory valuation where the first items placed in inventory are the first ones sold, standing for First In, First Out.

Recreational Vehicles

Motor vehicles or trailers equipped with living quarters used for recreational purposes like camping or traveling, commonly referred to as RVs.

Lower of Cost or Market

An accounting principle that requires inventory to be recorded at the lower value between its original cost and its current market price.

Gross Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, measuring a company's efficiency in managing its production costs.