In Canada,the Average Worker Can Produce 10 Computers or Six

question 229

Multiple Choice

In Canada,the average worker can produce 10 computers or six cars a year.In the United States,the average worker can produce 12 computers or 10 cars a year.Which of the following statements is CORRECT?

• A) Canada has a comparative advantage in the production of cars.
• B) Canada has an absolute advantage in producing both goods.
• C) The United States has an absolute advantage in both goods,but a comparative advantage in producing cars.
• D) The United States has a comparative advantage in producing computers.

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Definitions:

Office Supplies

Items used in offices on a regular basis for the purpose of carrying out tasks; includes items like pens, paper, and staplers.

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet.

Trial Balance

A statement that lists all the balances of the ledger accounts, used to verify that the total of debit balances equals the total of credit balances.

General Journal

An accounting book where all transactions are initially recorded, based on the double-entry bookkeeping system, before being transferred to specific accounts.