The Figure Given Below Represents the PPC in Two Nations

question 50

True/False

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-If an individual can produce a good or service with a lower opportunity cost than another individual, then he or she is said to have the comparative advantage.

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Definitions:

Prepaid Expenses

Costs paid for in advance of receiving the benefit of the service or product, recorded as an asset on the balance sheet until the expense is incurred.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Operating Activities

Activities directly related to the daily business operations, including cash generated from the core business as well as cash used.

Sale Of Equipment

A transaction where a business disposes of equipment assets, which may result in a gain or loss reflected in the financial statements.