According to the Theory of Comparative Advantage

question 141

Multiple Choice

According to the theory of comparative advantage,

• A)a country can gain from trade only if it can produce all goods at a lower cost than its trade partner.
• B)a country can gain from trade only if it can produce a good at a lower cost than another country.
• C)a country can gain from trade only if it can produce a good more efficiently than another country.
• D)any country can gain from trade.
• E)only high-income countries will gain from trade

---

Definitions:

Operating Cycle

The period from the acquisition of inventory to the collection of cash from receivables, reflecting a company's efficiency in managing its working capital.

Readily Marketable

Assets or securities that can be easily sold or converted into cash, typically without significant loss of value.

Short-Term Investments

Assets that can be easily converted into cash within a short timeframe, typically one year or less, without losing value.

Marketable Debt Securities

Investments in bonds or other debt securities that are available for sale before their maturity date.