A Country Has a Comparative Advantage in a Good If

question 9

Multiple Choice

A country has a comparative advantage in a good if:

• A) it can produce more of that good than any other country.
• B) it does not have an absolute advantage in that good.
• C) it has the lowest opportunity cost of producing that good.
• D) no other country is willing to buy that good from it.

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Definitions:

General Ledger Accounts

The comprehensive set of accounts that record all financial transactions of a business, summarized in the general ledger.

Owner's Capital

The amount of equity a business owner has invested in the company, representing the owner's stake or ownership interest.

General Journal

A primary accounting record where all types of financial transactions are initially recorded using the double-entry bookkeeping method.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances before financial statements are prepared.