What Is Comparative Advantage Based On

question 169

Multiple Choice

What is comparative advantage based on?

• A) capital costs
• B) labour costs
• C) dollar price
• D) opportunity costs

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Definitions:

Equity Financing

The act of raising capital through the sale of shares in a company, providing investors with part ownership.

Diversify

The strategy of allocating investments or resources across a variety of different areas to reduce risk.

504 Loan Program

A Small Business Administration program that provides long-term, fixed-rate financing to small businesses for major fixed assets, such as land and buildings.

Certified Development Company

A nonprofit organization sponsored either by private interests or by state or local governments.