The Advantage in the Production of a Product Enjoyed by One

question 59

Multiple Choice

The advantage in the production of a product enjoyed by one country over another when it uses fewer resources to produce that product than the other country does is:

• A) a comparative advantage
• B) a relative advantage
• C) an absolute advantage
• D) a productive advantage

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Definitions:

Cash

A form of currency that can be used to exchange goods, services, or to settle debts.

Total Liabilities

Total liabilities are the combined debts and financial obligations a company owes to outside parties at any given time.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, often referred to as net assets.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets.