The Table Given Below Represents the Output Per Hour of Cookies

question 11

Multiple Choice

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.Table 2.4

-Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. When these two individuals engage in trade, it would be advantageous for both if:

• A)Bob specializes in the production of toys and Bill specializes in car repairing.
• B)Bob specializes in car repairing and Bill specializes in the production of toys.
• C)they specialize only in car repairing.
• D)they specialize only in the production of toys.
• E)they distribute their working hours evenly between the production of two goods.

---

Definitions:

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating leverage and financial health.

Days' Sales in Inventory

A financial metric that indicates the average time in days that a company takes to turn its inventory into sales.

Dividend Yield

A financial metric that measures the annual dividends issued by a company compared to the price of its shares.

Total Asset Turnover

A financial ratio that measures how efficiently a company uses its assets to generate sales revenue.