How Is Absolute Advantage Found

question 102

Multiple Choice

How is absolute advantage found?

• A) by comparing opportunity costs
• B) by calculating the dollar cost of production
• C) by comparing the productivity of one nation to that of another
• D) by first determining which country has a comparative advantage

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Definitions:

Present Value

The value today of a future money sum or sequence of cash flows, based on a specific interest rate.

Interest Rate

The cost of borrowing money or the return on savings, usually expressed as a percentage.

Interest Rate

The percent of principal charged by the lender for the use of its money or the rate earned on deposited funds.

Revenues

Revenues are the total amount of money generated by a company from its business activities, such as the sale of goods or services, before any costs or expenses are deducted.