The Concept of Comparative Advantage in International Trade Is Based

question 4

Multiple Choice

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

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

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Definitions:

Common Share

A type of equity security that represents ownership in a corporation and entitles the holder to voting rights and dividends.

Derivative Security

A financial instrument whose value is based on the performance of an underlying asset, index, or security.

Related Security

Related Security implies a financial instrument that is linked to another in terms of performance, underlying assets, or issuer.

Value

The monetary, material, or assessed worth of an asset, good, or service.