A Country Is Said to Have a Comparative Advantage in the Production

question 79

Multiple Choice

A country is said to have a comparative advantage in the production of a good when it:

• A) has the lower opportunity cost of producing the good.
• B) can produce the good using fewer resources than another country.
• C) requires fewer labor hours to produce the good.
• D) all of the above.

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Definitions:

Received Cash

The inflow of cash to a business, recorded on the financial statements when cash is received from customers, loans, or other sources.

Accounts Payable Subsidiary Ledger

A detailed ledger that contains all individual transactions related to accounts payable.

Payments To Creditors

Money paid out by a business to settle debts owed to suppliers or lenders for goods, services, or loans.

Purchases On Account

Transactions where goods are acquired on credit, with payment to be made at a later date.