Table 26 Table 2

question 74

Multiple Choice

Table 2.6 Table 2.6 shows the number of labour hours required to produce a digital camera and a kilo of wheat in China and South Korea.
-Refer to Table 2.6.Does either China or South Korea have an absolute advantage and if so, in what product?

• A)South Korea has an absolute advantage in wheat.
• B)China has an absolute advantage in wheat.
• C)South Korea has an absolute advantage in both products.
• D)China has an absolute advantage in digital cameras.

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Definitions:

Federal Income Tax

A tax levied by the United States government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Gross Earnings

The total amount of money earned by an individual or corporation before any deductions are taken out.

Medicare Withholding

The portion of a U.S. employee's paycheck that is automatically deducted and contributed to the Medicare program.

Social Security Withholding

The process by which employers deduct a portion of an employee's salary to contribute to the Social Security program.