Comparative Advantage in Production of a Good Occurs

question 174

Multiple Choice

Comparative advantage in production of a good occurs

• A) when a country can produce that good using fewer resources than could other countries.
• B) when a country can produce that good at a greater opportunity cost than could other countries.
• C) when a country can produce that good at a lower opportunity cost than could other countries.
• D) when a country has a greater supply of natural resources required to produce that good, compared to other countries.

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Definitions:

Interdepartmental Services

Services provided between different departments within an organization, facilitating internal operations and support.

First-In, First-Out

A method of valuing inventory whereby the first items placed into inventory are the first ones considered sold.

Process Costing

A costing method used when homogenous products or services are produced in continuous processes.

Units Completed

The total number of products finished and ready for sale or distribution during an accounting period.