"Comparative Advantage" Is Defined as a Situation in Which One

question 203

Multiple Choice

"Comparative advantage" is defined as a situation in which one person can produce

• A)a good for a lower opportunity cost than another person.
• B)more of a good than another person.
• C)a good for a lower dollar cost than another person.
• D)more of all goods than another person.
• E)all goods for lower opportunity costs than another person.

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Definitions:

Ledger

A comprehensive collection of a company's financial transactions, organized by account.

Alphabetical Order

A method of sorting by arranging items according to the sequence of letters in the alphabet.

Credits

In accounting, credits are entries that decrease assets or increase liabilities and equity on a company's balance sheet, corresponding to the double-entry bookkeeping system.

Debits

Entries made on the left-hand side of an account record in double-entry bookkeeping, indicating increases in assets or expense accounts, or decreases in liabilities, equity, or revenue accounts.