When a Country Is Not Able to Produce a Good

question 64

Multiple Choice

When a country is not able to produce a good more efficiently than other nations,but produces the good more efficiently than it does any other good,it is said to have a(n) ________.

• A) absolute advantage
• B) resource advantage
• C) first-mover advantage
• D) comparative advantage

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Definitions:

Contingent Liability

A potential financial obligation that may arise in the future, depending on the outcome of a specific event.

Accrued Liability

An expense that a business has incurred but has not yet paid, which is recognized in the financial statements for the period it relates to.

Loss

The result when a company's expenses exceed its revenues during a specific period, leading to a negative net income.

Operating Cycle

The average time period between the acquisition of materials for production and the receipt of cash from sales of the finished goods, critical for managing cash flow.