Which of the Following Statements Shows How Absolute Advantage Can

question 101

Multiple Choice

Which of the following statements shows how absolute advantage can be distinguished from comparative advantage?

• A) Absolute advantage refers to the ability to produce a good using fewer inputs, while comparative advantage is based on the monthly amount.
• B) Absolute advantage is based on the yearly production amount that a country can produce, while comparative advantage is based on the monthly production amount.
• C) Absolute advantage refers to the ability to produce a larger amount of goods with the same number of inputs, whereas comparative advantage refers to the ability to have the lowest opportunity cost of production.
• D) Absolute advantage is based on the amount of land a country has to use, while comparative advantage is based on the cost of the labor.

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Definitions:

Reportable Segments

Portions of a business that can be separated out for reporting purposes because they generate their own revenues and expenses and have their own distinct operations.

Subsidiary Financial Statements

Financial statements prepared specifically for a subsidiary company, detailing its financial performance and position independently.

Business Segments

Components of a company that can be separated out for financial analysis because they represent different areas of business activity, having distinct products, services, or markets.

Joint Selling

The practice where two or more entities join together to sell their products or services, often to increase market reach or share costs.