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​If a Country Has a Higher Opportunity Cost to Produce

question 141

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​If a country has a higher opportunity cost to produce a good, that means that this country can never possess a comparative advantage in the production of any good.


Definitions:

Foreign Exchange Gain

A gain resulting from the increase in value of one currency against another when the currencies are converted.

Loan Payable

A liability representing the amount of money borrowed that is yet to be repaid.

Interest

The cost paid for borrowing money, typically expressed as a percentage of the total amount loaned.

Exchange Rates

The worth of one currency when converting it to another.

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