The United States Has Developed a Comparative Advantage in Digital

question 83

Multiple Choice

The United States has developed a comparative advantage in digital computers,airliners,and many prescription drugs.The source of its comparative advantage in these products is

• A)a favorable climate.
• B)technology.
• C)abundant supplies of natural resources.
• D)a strong central government.

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Definitions:

Net Income

The total earnings or profit of a company after subtracting all expenses, including taxes, interest, and costs, representing the bottom line on an income statement.

Comparative Consolidated Financial Statements

Financial statements that provide financial information for multiple periods, offering a way to compare a company's financial performance over time.

Acquisition Differential

The difference between the cost of acquiring a company and the fair value of its identifiable net assets, often recognized as goodwill.

Business Combination

A transaction or event in which an acquirer gains control over one or more businesses, merging entities into one operational unit.