How Is Absolute Advantage Found

question 102

Multiple Choice

How is absolute advantage found?

• A) by comparing opportunity costs
• B) by calculating the dollar cost of production
• C) by comparing the productivity of one nation to that of another
• D) by first determining which country has a comparative advantage

---

Definitions:

Inventory Turnover

A financial ratio that measures how many times a company has sold and replaced its inventory over a certain period of time.

Decimal Place

Refers to the position or number of digits to the right of the decimal point in a decimal number, indicating a part of a whole in fractional terms.

Working Capital

The difference between a company’s current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Current Year

The ongoing year or the present calendar year in which transactions or activities are being accounted for.