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GuDViN [60]
3 years ago
14

Country X can cut, prepare, and export lumber using fewer worker hours than Country Y. Country Y can produce lumber but produces

cars more efficiently than it produces lumber. It also produces cars more efficiently than Country X. Which of these statements is accurate?
A. Country X will import Country Y's lumber due to absolute advantage
B. Country X will import Country Y's lumber due to comparative advantage
C. Country Y will import Country X's lumber due to comparative advantage
D. Country Y will import Country Y's lumber due to absolute advantage
Business
1 answer:
Thepotemich [5.8K]3 years ago
8 0

Answer:

The correct answer is option C.

Explanation:

Absolute advantage refers to the situation where a country or individual can produce at a relatively lower cost or using fewer inputs.

Comparative advantage refers to the situation where a nation or an individual can produce a good at a relatively lower opportunity cost.

Country X takes fewer labor-hours to produce lumber than country X while country Y can produce cars more efficiently.  

This implies that country X has a comparative advantage in producing lumber and country Y has a comparative advantage in producing cars.  

So country Y will import lumber from country X and export cars to them.

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Answer: George Washington

Explanation: He was a founding father of the U.S, establishing his importance in history and earning a place on the U.S currency.

5 0
3 years ago
Read 2 more answers
Suppose the real risk-free rate is 3.50% and the future rate of inflation is expected to be constant at 2.20%. What rate of retu
muminat

Answer:

1.27%

Explanation:

Rate of return = [(1+real risk free rate)/(1+inflation rate)]-1

real risk free rate = 3.5%

inflation rate = 2.20%

Therefore Rate of return = [(1+ 3.5%)/(1+2.20%)]-1

=1.27%

5 0
3 years ago
"stooge enterprises manufactures ceiling fans that normally sell for? $90 each. there are 300 defective fans in? inventory, whic
Oliga [24]

<span>We know that Profit = Earnings  - Cost</span>

Case 1: Sold as is

Profit = (300 fans* $20/fan) - (300 fans* $55/fan)

Profit = - $10, 500 (deficit)

 

Case 2: Processed further then sell

Profit = (300 fans* $90/fan) – [(300 fans* $55/fan) + (300 fans* $40/fan)]

Profit = - $1, 500 (deficit)

 

<span>Since Case 2 has lower deficit, then it is better to process the fans further then sell to normal selling price.</span>

4 0
3 years ago
Zach Company owns 40% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Co
Anna71 [15]

Credit to the investment account for $8,000. The consolidated financial statements would therefore be necessary once one firm acquired 50% or more of the voting capital of another company. A parent-subsidiary relationship is created as a result of consolidation, with the parent business assuming ownership of the stock.

Investment account:

When you consider investing, a cash account is likely the type of Investment account that comes to mind. You fund a cash brokerage account by making a deposit, and you then utilise the money to purchase securities.

Cash and assets (stocks, bonds, ETFs, mutual funds, etc.) that you buy and sell to reach your financial objectives are kept in an investment account. Trading accounts for individual investors are managed by dealers and their representatives who are registered investment advisors.

There are four basic asset classes, or investment categories, from which you can select. Each has unique qualities, dangers, and advantages.

Learn more about Investment account here:

brainly.com/question/22094328

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7 0
2 years ago
Drew Co. uses the average cost inventory method for internal reporting purposes and LIFO for financial statement and income tax
Xelga [282]

Answer:

Dr Cost of Goods Sold  20,000

Cr LIFO Reserve           (20,000 )

Explanation:

<u>Journal Entr</u>y    

Dr Cost of Goods Sold  20,000

Cr LIFO Reserve                 (20,000 )

<u>Ending Balances after adjustment</u>:  

 

<u>Stocks</u>:

Inventories        375,000

<u>LIFO Reserve   </u>  <u> (55,000 )</u>

Total:                   320,000   ( Financial Statement and Income Tax compliance )

 

8 0
3 years ago
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