Assume Ireland Can Produce 4 Units of Good X or 2

question 47

Multiple Choice

Assume Ireland can produce 4 units of good X or 2 units of good Y.France can produce 3 units of good X or 9 units of good Y.What would be the terms of trade between Ireland and France for 1 unit of good X?

• A)Between 1/2 and 3 units of Y.
• B)Between 1/3 and 1/2 units of Y.
• C)Between 4 and 9 units of Y.
• D)Between 1/3 and 3 units of Y.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholders, usually in the form of cash, out of its profits or reserves.

Payable

Refers to an amount of money that a company owes to its creditors or suppliers, to be paid at a later date.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit.

Indirect Method

Indirect Method is a way of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for non-cash transactions and changes in working capital.