Under Certain Assumptions,the Model of Comparative Advantage Predicts That Maximum

question 8

Multiple Choice

Under certain assumptions,the model of comparative advantage predicts that maximum output can be achieved if each person produces goods or services where

• A) all factors of production are used in equal amounts.
• B) the most equitable distribution is created.
• C) the government intervenes the least.
• D) firms maximize their revenues
• E) he or she has the lowest opportunity cost.

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Definitions:

Consolidated Current Assets

The total value of all short-term assets held by a company and its subsidiaries, as reported on a consolidated balance sheet.

Excess Consideration

This term is involved in accounting and finance, indicating the amount paid over the fair value of the net assets of a company during an acquisition.

Underlying Book Value

The net asset value of a company calculated from its financial statements, excluding intangible assets and liabilities.