If a Nation Can Produce a Good More Quickly Than

question 118

Multiple Choice

If a nation can produce a good more quickly than any other nation,that nation has a(n)

• A) comparative advantage.
• B) total advantage.
• C) relative advantage.
• D) absolute advantage.
• E) need to trade.

---

Definitions:

Accumulated Depreciation

The cumulative amount of depreciation expense that has been recorded against a fixed asset since it was acquired and put into use.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, indicating the ownership equity spread among shareholders.

Fixed Asset Turnover Ratio

A performance metric that measures a company's efficiency in using its fixed assets to generate sales, calculated as net sales divided by the average net fixed assets.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting its consumption or wear and tear.