Which Statement Is TRUE

question 117

Multiple Choice

Which statement is TRUE?

• A) It is virtually impossible for a country to be the low-cost producer of all goods and services.
• B) The benefits of trade depend on absolute advantage, not comparative advantage.
• C) A country could have a comparative advantage in producing everything.
• D) A country that has the absolute advantage in production will also have the comparative advantage.

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Definitions:

Transactions

Business events that have a monetary impact on the financial statements of an organization.

Traditional Accounting System

An accounting practice that uses manual processes and ledgers for bookkeeping without extensive technology.

Lean Principles

A set of management practices that aim to minimize waste and increase efficiency in manufacturing processes.

Inventory Shortages

Situations where the actual inventory count is less than what is recorded on the books, indicating possible issues such as theft or errors.