The Concept of Comparative Advantage in International Trade Is Based

question 37

Multiple Choice

The concept of comparative advantage in international trade is based on _ as opposed to absolute costs.

• A)opportunity costs
• B)absolute prices
• C)average cost
• D)total cost
• E)relative prices

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Definitions:

Short-Term Lease

A lease agreement with a duration, typically less than a year, used for temporary occupancy or use of assets.

Fixed Asset

Tangible assets, like buildings, machinery, or vehicles, intended for use over a long period and not readily convertible into cash.

Rent Expense

The cost incurred by a business for leasing property or equipment used in operations, reflected as an expense on the income statement.

Double-Declining-Balance

An accelerated depreciation method that calculates depreciation at twice the rate of the straight-line method.