Which of the Following Statements About Absolute and Comparative Advantage

question 57

Multiple Choice

Which of the following statements about absolute and comparative advantage is not true?

• A) If a country has a comparative advantage at producing a good, it can have an absolute advantage at producing another good.
• B) If a country has an absolute advantage at producing a good, it can also have a comparative advantage at producing that good.
• C) A country may have an absolute advantage at producing all goods.
• D) A country may have a comparative advantage at producing all goods.

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Definitions:

Total Cost of Borrowing

This is the overall amount paid by a borrower over the life of a loan, including interest, fees, and any other charges.

Issued at a Discount

When bonds or other securities are sold for less than their face value upon issuance.

Issued at a Premium

Refers to the situation where securities, such as bonds, are sold for a price above their face value.

Discount on Bonds Payable

The difference between the face value of a bond and its selling price when the bond is sold for less than its face value.