Suppose that Greece and Austria both produce rye and cheese. Greece's opportunity cost of producing a pound of cheese is 4 bushels of rye while Austria's cost of producing a pound of cheese is 10 bushels of rye. By comparing the opportunity of Cheese in the two countries, you can tell that has a comparative advantage in the production of cheese and .Suppose that Greece and Austria consider trading cheese and rye with each other. Greece can gain from specialization and trade as long as it receives more than of rye for each pound of cheese it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than of cheese for each bushel of rye it exports to Greece.

Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of rye) would allow both Austria and Greece to gain from trade?

a. 9 bushels of rye per pound of cheese
b. 2 bushels of rye per pound of cheese
c. 1 bushel of rye per pound of cheese
d. 7 bushels of rye per pound of cheese

What is the difference between a public and a private corporation?

Responsible for setting the goals and planning for the future as well as leading and controlling the work of others. out the decisions of top management. often responsible for various departments such as the production, marketing, and accounting departments. process or function of planning organizing leading and controlling. the resources arranged in an orderly and functional way to accomplish goals and objectives. the company on track and making sure goals are met. for the daily operations of a business. examples of this are supervisors, office managers, and crew leaders. act or process of creating goals and objectives as well as the strategies to meet them. for the daily operations of a business. examples of this are supervisors, office managers, and crew leaders. how the firm is structured and who is in charge of whom. direction and vision

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.