Specializing in the Production of a Good or Service in Which

question 229

Multiple Choice

Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except

• A)engage in mutually beneficial trade with other nations.
• B)increase the variety of products that it can consume with no increase in resources.
• C)consume a combination of goods that lies outside its own production possibilities frontier.
• D)produce a combination of goods that lies outside its own production possibilities frontier.

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Definitions:

Break-even

The point at which total revenues equal total costs, resulting in no net profit or loss.

Accounting Break-even

The point at which a company's revenues exactly cover its expenses, without generating a profit or a loss.

Cash Break-even

Cash break-even is the point at which a business generates just enough revenue to cover its cash outflows, without making a profit or loss.

Financial Break-even

The point at which total revenues equal total costs, resulting in neither profit nor loss.