An Economy Is Said to Have a Comparative Advantage in the Production

question 57

Multiple Choice

An economy is said to have a comparative advantage in the production of a good if it can produce that good:

• A)with more resources than another economy.
• B)with a higher opportunity cost than another economy.
• C)outside its production possibilities curve.
• D)at a lower opportunity cost than another economy.

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Definitions:

Accounts Receivable

Money owed to a company by its customers or clients for goods or services provided on credit.

Revenues

The total income generated from normal business operations, including sales of goods or services before any expenses are deducted.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Accounts Receivable

Accounts receivable refers to the money owed to a business by its customers for goods or services delivered on credit but not yet paid for.