The Idea of Comparative Advantage Is That

question 28

Multiple Choice

The idea of comparative advantage is that:

• A)each country can gain from trade as long as the opportunity cost of producing one good compared with another good is different between countries.
• B)every country can gain from trade as long as all countries can produce roughly the same quantity of each good.
• C)every country can gain from trade as long as the opportunity cost of producing one good compared with another good is the same as for other countries.
• D)every country can gain from trade as long as the absolute amount of exports equals imports.

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Definitions:

Accrued Liabilities

Liabilities recorded on the balance sheet that represent expenses that have been incurred but not yet paid.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered and invoiced but not yet paid for.

TIE Ratio

A financial performance indicator that shows a company's capacity to cover its interest expenses with its current earnings, highlighting its financial health and stability.

Target

In the business context, it generally refers to a specific objective or goal that a company or individual aims to achieve.