Table 3-3 -Refer to Table 3-3.What Does Each of the Two Producers

question 116

Multiple Choice

Table 3-3

-Refer to Table 3-3.What does each of the two producers have an absolute advantage in

• A)Kevin has an absolute advantage in blankets, and Amy has an absolute advantage in sweaters.
• B)Kevin has an absolute advantage in sweaters, and Amy has an absolute advantage in blankets.
• C)Kevin has an absolute advantage in neither good, and Amy has an absolute advantage in both goods.
• D)Kevin has an absolute advantage in both goods, and Amy has an absolute advantage in neither good.

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Definitions:

Required Return

The minimum annual return rate that incites people or companies to allocate resources to a particular investment or project.

Constant Growth

A model in finance that assumes a stock’s dividends will continue to grow at a uniform rate indefinitely, used to estimate the stock's current value.

Dividends

Proceeds allocated by a corporation to its share owners, principally derived from the business's earnings.

Rate Of Return

The fiscal growth or shrinkage in an investment's value during a particular lapse of time, marked as a percentage of the initial investment expense.