Suppose That,given the Same Number of Workers,the United States Can

question 108

Multiple Choice

Suppose that,given the same number of workers,the United States can produce two times as many TVs or 20 times as many potatoes as Chile.Which of the following statements is true?

• A) Chile should trade with the United States for potatoes because the United States has an absolute advantage in the production of potatoes.
• B) Chile should trade with the United States for TVs because the United States has an absolute advantage in the production of potatoes.
• C) The United States can benefit from trading TVs but not potatoes with Chile.
• D) The United States has absolute advantage in producing both goods.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that reduces the total amount of accounts receivable to reflect the estimated portion that may not be collected.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered or used but not yet paid for.

Aging

A method used to categorize accounts receivable based on the length of time an invoice has been outstanding, helping businesses to manage and collect debts effectively.

Adjusting Entry

A journal entry made at the end of an accounting period to record revenues and expenses in the correct period.