If One Person Has the Absolute Advantage in Producing Both

question 119

Multiple Choice

If one person has the absolute advantage in producing both of two goods, then that person

• A)must also have a comparative advantage in both goods
• B)cannot benefit from trade
• C)cannot have a comparative advantage in either good
• D)will have the comparative advantage in only one good
• E)should specialize in the production of both goods

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Definitions:

Straight-Line Depreciation

A procedure for breaking down the cost of a tangible asset over its period of operation in equal annual installments.

Mutually Exclusive

Situations or events that cannot occur at the same time, requiring a choice to be made.

Straight-Line Depreciation

A template for apportioning the cost of a solid asset throughout its active life in equal yearly parts.

Payback Period

The duration it takes for an investment to return its original cost to the investor.