Which of the Following Statement Is True

question 65

Multiple Choice

Which of the following statement is true?

• A) A country has a comparative advantage in producing a good if the opportunity cost for producing the good is higher at home than in the other country.
• B) A country has a comparative advantage in producing a good if the opportunity cost for producing the good is the same at home and in the other country.
• C) A country has a comparative advantage in producing a good if the opportunity cost for producing the good is lower at home than in the other country.
• D) None of the above are true.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Market Price

The ongoing cost for buying or selling an asset or service within a market setting.

Acid-Test Ratio

A stringent indicator of a company's liquidity, calculated by dividing liquid assets excluding inventories by current liabilities.

Company

A business organization founded by a group of individuals dedicated to pursuing and administering a commercial or industrial venture.