Table 2-7 Table 2-7 Shows the Output Per Week of Week

question 43

Multiple Choice

Table 2-7
Table 2-7 shows the output per week of two people,Minnie and Mickey.They can either devote their time to making hats or making umbrellas.
-Refer to Table 2-7.Which of the following statements is true?

• A)Mickey has an absolute advantage in making both products.
• B)Minnie has an absolute advantage in making both products.
• C)Minnie has an absolute advantage in making hats and Mickey in making umbrellas.
• D)Minnie has an absolute advantage in making umbrellas and Mickey in making hats.

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Definitions:

Agency Coupled With An Interest

An irrevocable agency agreement in which the agent is given an interest in the subject matter of the agency. Also called irrevocable agency.

Principal

The original sum of money borrowed in a loan, or the amount of the investment, not including the interest or profits.

Agency Relationship

A legal bond where one party, the agent, acts on behalf of another, the principal, in dealings with third parties.

Financial Year End

Financial year end is the completion of a one-year, or 12-month, accounting period; the date when companies must finalize their financial statements and report their financial performance.