A Country Possesses a Comparative Advantage in the Production of a Good

question 189

Multiple Choice

A country possesses a comparative advantage in the production of a good if

• A) it possesses an absolute advantage in the production of this good.
• B) the opportunity cost in terms of forgone output of alternative goods is lower for this country than it is for its trading partners.
• C) it is able to produce more of this good per hour than can any other country.
• D) all of the above

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Definitions:

Net Income

The total earnings or profit a company generates, calculated as revenue minus expenses, taxes, and deductions.

Total Assets

The sum of all resources owned by a company that have economic value and can be converted into cash, including property, equipment, and cash itself.

Price-Earnings Ratio

A valuation metric comparing a company's current share price to its per-share earnings, indicating investor expectations of growth.

Market Price

The existing cost for purchasing or selling an asset or service.