A Country Has an Absolute Advantage Over Another in the Production

question 129

Multiple Choice

A country has an absolute advantage over another in the production of widgets if it can produce

• A)widgets using smaller quantities of resources than can the other country.
• B)more widgets than can the other country.
• C)widgets more efficiently than can the other country.
• D)widgets at a lower opportunity cost than can the other country.

---

Definitions:

Supplementary Disclosure

Additional information provided in financial statements, beyond the basic requirements, to give more insight into a company's financial status and operations.

Contingent Liabilities

Liabilities that may occur depending on the outcome of an uncertain future event.

Capital Commitments

Obligations of a company to spend capital in the future on items such as property, plant, and equipment or other significant investments.

AASB 11

Australian Accounting Standard Board's directive concerning the financial reporting of interests in joint arrangements to ensure transparency and comparability.