When Does a Country Have an Absolute Advantage in the Production

question 34

Multiple Choice

When does a country have an absolute advantage in the production of a good?  

• A) when that country can produce the good using fewer resources than another country would require 
• B) when that country has the lowest opportunity cost of producing the good and can produce it with the fewest resources 
• C) when that country has the lowest opportunity cost of producing the good regardless of whether it is produced with the fewest resources 
• D) when that country has the greatest opportunity cost of producing the good regardless of whether it is produced with the fewest resources

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Definitions:

Voucher Number

A unique identification code assigned to each transaction or invoice in an accounting system.

Vouchers Payable

An accounting term that refers to accounts payable obligations for which vouchers have been created but not yet paid.

Unpaid Voucher File

A file or record keeping system that tracks invoices and vouchers that have not yet been paid by the company.

Sales Discounts

Reductions in the price of goods sold, offered to customers as an incentive to either prompt payment or increase sales volume.