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

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Definitions:

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate.

Required Return

The minimum profit or yield that investors expect or require from an investment.

Interest

The cost of borrowing money or the income earned from lending money, usually expressed as a percentage of the principal.

Coupon Rate

Yearly interest earnings from a bond, shown as a percentage of its face value.