Table 2-20 Table 2-20 Shows the Number of Labor Hours

question 485

Multiple Choice

Table 2-20
Table 2-20 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand.
-Refer to Table 2-20. Thailand has a comparative advantage in the production of

• A) rice.
• B) wristwatches.
• C) both products.
• D) neither product.

---

Definitions:

Capital Budgeting

The process by which a business evaluates and plans for significant investments in projects or long-term assets.

Straight-Line Depreciation

A technique of spreading the expense of an asset evenly across its lifespan to calculate depreciation.

Income Tax Expense

The amount of money a company is required to pay to the government based on its net income, according to the applicable income tax rates.

Capital Budgeting

The process of planning and managing a company's long-term investments in projects and assets.