The Table Below Shows Units of Wheat and Cloth Produced

question 88

Multiple Choice

The table below shows units of wheat and cloth produced by each worker per day in both the countries.Table 20.1

-For purposes of determining comparative advantage, the cost of producing a good in each of two countries is measured in terms of:

• A)metric units only.
• B)opportunity costs.
• C)total costs.
• D)the currency of the importing country.
• E)the currency of the exporting country.

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Definitions:

Deferred Revenue

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

Utilities Expense

Utilities expense refers to the cost incurred by a business for the consumption of utility services such as electricity, water, and gas.

Accounts Payable

Liabilities or amounts owed by a company to creditors for goods and services that have been purchased on credit but not yet paid for.

Journal

A chronological record where financial transactions are initially recorded using the double-entry accounting system before being transferred to accounts in the ledger.