Which of the Following Is Correct About Comparative Advantage

question 10

Multiple Choice

Which of the following is correct about comparative advantage?

• A) Some countries will have a comparative advantage in everything.
• B) Having a comparative advantage without an absolute advantage is impossible.
• C) A comparative advantage in a good means that the country can produce more of the good than any other country.
• D) A country has a comparative advantage in the production of a good if it can produce the good at lower opportunity cost than any other country.
• E) None of the above answers is correct.

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Identify the steps in organizing thoughts and structuring both speeches and written content effectively.

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Definitions:

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Effective Interest Rate

The actual cost of borrowing or the actual return on investment, taking into account the effect of compounding interest as opposed to the nominal rate.

Amortization

The gradual reduction of a debt over a period of time by periodic payments of principal and interest sufficient to repay the loan by maturity.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.