When the Principle of Comparative Advantage Is Used to Guide

question 130

Multiple Choice

When the principle of comparative advantage is used to guide trade, then a country specialises in producing only

• A) goods with the lowest opportunity cost.
• B) goods for which production costs are more than average total costs.
• C) goods with the highest opportunity cost.
• D) goods for which production takes fewer worker- hours than in another country.

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Definitions:

Journalizing

The process of logging charges and receipts in a chronological list each day; used in the single-entry system of bookkeeping.

Daily Log

A personal record kept on a daily basis detailing activities, observations, or measurements, which can be useful for tracking progress or identifying trends over time.

Daily Log

A record kept every day to track activities, observations, or progress towards goals, often used for personal or professional purposes.

Disbursements Journal

A financial record used to document cash payments or cash outflows from a business.