Comparative Advantage Means

question 78

Multiple Choice

Comparative advantage means

• A)the ability to produce more of a product with the same amount of resources than any other producer.
• B)the ability to produce a good or service at a lower opportunity cost than any other producer.
• C)the ability to produce a good or service at a higher opportunity cost than any other producer.
• D)compared to others you are better at producing a product.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

Balance Sheet

A financial record that outlines the value of a company's assets, its liabilities, and the equity belonging to investors, at a particular time.

Financial Statement Items

These are line items or components found in financial statements like the balance sheet, income statement, and cash flow statement, representing financial performance and position.

Decreases

Represents a decline in quantity, value, or quality of an asset, revenue, or any other financial element.