According to the Law of Comparative Advantage,a Nation Will Benefit

question 37

Multiple Choice

According to the law of comparative advantage,a nation will benefit from international trade when it

• A)imports more than it exports.
• B)exports more than it imports.
• C)imports goods for which it is a high opportunity-cost producer,while exporting goods for which it is a low opportunity-cost producer.
• D)exports goods for which it is a high opportunity-cost producer,while importing those goods for which it is a low opportunity-cost producer.

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Definitions:

Comparability

The quality that allows users to analyze trends in financial data across different time periods within a company or compare financial data across companies.

Understandability

Understandability in accounting means financial information should be presented clearly and concisely, making it easy for users to comprehend.

Conceptual Framework

An underlying structure in various fields that outlines principles and concepts for systematic study or analysis.

Publicly Traded

A company whose shares are bought and sold on stock exchanges, allowing investors to own a part of the company.