A Nation with No Absolute Advantage

question 46

Multiple Choice

A nation with no absolute advantage:

• A) will invest in finding an absolute advantage
• B) will have continuing decreases in the standard of living
• C) will specialize in goods with a comparative advantage
• D) will not trade with other nations

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense recorded for an asset, reducing its book value over time.

Equipment Costing

The process of tracking and analyzing the costs associated with the purchase and maintenance of equipment.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Maturity Date

The specified date on which the principal amount of a bond or other financial instrument is due to be repaid.