The Concept of "Comparative Advantage" Refers to the

question 5

Multiple Choice

The concept of "comparative advantage" refers to the

• A)ability of one region to produce a commodity with less labour input than another region.
• B)ability of one region to produce a commodity with fewer total inputs than another region.
• C)ability of one region to produce a commodity at a lower opportunity cost than another region.
• D)terms of trade index.
• E)gains from international trade.

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Definitions:

Fair Use

A legal doctrine allowing limited use of copyrighted material without needing permission, typically for purposes such as criticism, comment, news reporting, or research.

Double-Declining-Balance

A method of accelerated depreciation where an asset's value decreases at double the rate of traditional straight-line depreciation.

Book Value

The original cost of an asset minus accumulated depreciation.

Scrap Value

The estimated resale value of an asset after its useful life is over and it can no longer be used for productive purposes.