An Economy Is Said to Have a Comparative Advantage in Producing

question 129

Multiple Choice

An economy is said to have a comparative advantage in producing a particular good if it:

• A) can produce more of all goods than another economy.
• B) can produce less of all goods than another economy.
• C) has the highest cost for producing that good.
• D) has the lowest cost for producing that good.

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Definitions:

Treasurer

An officer of a company or organization responsible for managing financial risks, investments, and treasury operations.

Expected Profit

The forecasted gain or loss from a business venture or investment, calculated by multiplying the potential outcomes by their probabilities.

Liabilities

Liabilities are financial obligations or debts that a business has to pay back in the future, such as loans, accounts payable, and mortgages.

Assets

Refers to resources owned by a company or individual that have economic value and can provide future benefits.