Recall the Application About Productivity in the Nation of Latvia

question 24

Multiple Choice

Recall the Application about productivity in the nation of Latvia in the 1990s to answer the following question(s) .
-According to this Application, in the 1990s EU countries had ________ in the production of all products compared to Latvia.

• A) an absolute advantage and a comparative advantage
• B) an absolute advantage but not a comparative advantage
• C) a comparative advantage but not an absolute advantage
• D) neither an absolute advantage nor a comparative advantage

---

Definitions:

Vertical Analysis

A financial analysis method that represents each item in a financial statement as a percentage of a base figure, enabling comparison and assessment of financial health over different periods.

Trend Analysis

A type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item.

Gross Profit

The financial metric representing the difference between revenue and the cost of goods sold, before accounting for other expenses.

Vertical Analysis

A financial statement analysis method where each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.