By Specializing in the Production of Particular Goods, a Nation

question 109

Multiple Choice

By specializing in the production of particular goods, a nation is:

• A) less likely to make efficient use of available resources.
• B) more likely to engage in international trade.
• C) able to become self-sufficient.
• D) unable to develop a comparative advantage.

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Definitions:

Credit Sales

Transactions where goods or services are sold by a company with payment to be received at a later date.

Operating Cycle

The duration between a company's purchase of inventory and the receipt of cash from accounts receivable.

Accounts Receivable Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services provided.

Inventory Period

The average time that inventory is held before it is sold or used in production.