According to the Following Table,the US Can Gain from Trade

question 5

Multiple Choice

According to the following table,the US can gain from trade with the UK by getting how much cloth for 9 bushels of wheat?
$\begin{array}{|l|c|c|}\hline &\text { U.S. }&\text { U.K.} \\\hline \text {Wheat (bushels/hr) }& 9 & 3 \\\hline\text { Cloth (yards/hr) }& 5 & 4 \\\hline\end{array}$

• A)Only less than 12 yards of cloth
• B)Only greater than 9 yards of cloth
• C)Anything less than 5 yards of cloth
• D)Anything greater than 5 yards of cloth

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Definitions:

Equity Method

A method of accounting that allows an investor to recognize gains and losses through their share of an associate's profits or losses, adjusting the value of their investment accordingly.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) for global use.

Entity Theory

A concept in accounting that treats a business as separate from its owners or other businesses, supporting the preparation of separate financial statements.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intercompany transactions, presented in a consolidated financial statement.