Which Theory States That a Nation Should Produce and Sell

question 16

Multiple Choice

Which theory states that a nation should produce and sell goods to other countries that it produces most efficiently,and buy goods produced more efficiently by other countries?

• A)Comparative advantage.
• B)Absolute advantage.
• C)Mercantilism.
• D)Bilateral advantage.

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Definitions:

Retained Earnings

Accumulated net income not distributed to shareholders as dividends but retained by the company for reinvestment in its operations or to pay debt.

Mining Tract

A specific piece of land designated for mineral extraction and mining operations.

Depletion

A method used to allocate the cost of extracting natural resources, such as timber, minerals, and oil, from the earth over the period those resources are consumed.

Reclamation

The process of restoring land that has been mined, logged, or used for industrial purposes back to its natural state or ensuring it is usable for a different purpose.