A Country Should Export Only Those Goods for Which, Relative

question 169

Multiple Choice

A country should export only those goods for which, relative to its trading partners, it has the

• A)absolute advantage
• B)highest opportunity cost
• C)lowest production possibilities
• D)strongest demand
• E)lowest opportunity cost

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its short-term assets.

Raw Materials

The basic materials and substances that are used in the initial stages of production and manufacturing.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Book Value Per Share

A financial measure that indicates the value of a company's equity as represented in its shares, calculated by dividing total shareholders' equity by the number of outstanding shares.