-According to the Above Table, If These Two Countries Trade

question 222

Multiple Choice

-According to the above table, if these two countries trade

• A) Mexico should export tablets and the United States export TVs.
• B) the United States should import tablets and Mexico should import TVs.
• C) the United States should export tablets and Mexico should export TVs.
• D) we cannot tell which country should export which good without knowing the amount of labor utilized in each country.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to fund day-to-day operations.

Current Ratio

A financial metric assessing a firm's capability to settle its current obligations using its current assets.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and accounts receivable) without relying on inventory sales.

Current Ratio

This ratio evaluates a corporation's potential to meet its immediate financial obligations, by dividing the total of current assets by the total of current liabilities.