If a Nation Does Not Have an Absolute Advantage in Producing

question 87

Multiple Choice

If a nation does not have an absolute advantage in producing anything, it

• A)has no comparative advantage either.
• B)will have a comparative advantage in the activity in which it is least inefficient.
• C)will try to get along without trade.
• D)will export raw materials and import finished products.

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Definitions:

Purchase Order

A formal document issued by a buyer to a seller, detailing the products or services ordered at agreed-upon prices.

Sales Cycle

The process that companies follow from the initial contact with a potential customer to the closing of a sale, including steps such as prospecting, communicating, negotiating, and fulfilling orders.

Merchandising Company

A business entity that purchases goods in large quantities from manufacturers or wholesalers and then sells them in smaller quantities to consumers.

Receive Inventory

The process of accepting, documenting, and storing goods delivered to a business.