If Jeremy Has an Absolute Advantage in Cooking and Margaret

question 53

Multiple Choice

If Jeremy has an absolute advantage in cooking and Margaret has an absolute advantage in cleaning,then:

• A)Jeremy has a comparative advantage in cooking and Margaret has a comparative advantage in cleaning.
• B)Jeremy has a comparative advantage in cleaning and Margaret has a comparative advantage in cooking.
• C)Margaret has a comparative advantage in cleaning,but we can conclude nothing about Jeremy.
• D)Jeremy has a comparative advantage in cooking,but we can conclude nothing about Margaret.
• E)we can conclude nothing about comparative advantage.

Learn about social media's role and impact in market research.

Know the importance and components of a research design.

Differentiate between qualitative and quantitative data collection methods.

Understand the concepts of bias and error in social media research.

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Definitions:

Carrying Value

The book value of an asset as reflected in a company's financial statements, calculated as the original cost minus accumulated depreciation.

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Effective Interest Rate

The actual cost of borrowing or the actual return on investment, taking into account the effect of compounding interest as opposed to the nominal rate.

Amortization

The gradual reduction of a debt over a period of time by periodic payments of principal and interest sufficient to repay the loan by maturity.