If Sam Can Chop Up More Carrots Per Minute Than

question 74

Multiple Choice

If Sam can chop up more carrots per minute than Joe can, then

• A)Joe has an absolute advantage in carrot chopping
• B)Joe must have a comparative advantage in carrot chopping
• C)Sam has an absolute advantage in carrot chopping
• D)Sam must have a comparative advantage in carrot chopping
• E)we can conclude nothing about absolute advantage

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Definitions:

Direct Labor

Labor provided by employees who are directly involved in the production of goods or the delivery of services, forming an essential part of the production process.

Manufacturing Overhead

All indirect costs associated with the production of goods, such as utilities, maintenance, and salaries not directly tied to specific units.

Cost of Goods Manufactured

The total production cost of goods completed during an accounting period.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, usually comprising the balance sheet, income statement, and cash flow statement.