Which of the Following Is Not Correct

question 131

Multiple Choice

Which of the following is not correct?

• A)The producer who requires a smaller quantity of inputs to produce a good is said to have an absolute advantage in producing that good.
• B)The producer who gives up less of other goods to produce Good X has the smaller opportunity cost of producing Good X.
• C)The producer who has the smaller opportunity cost of producing a good is said to have a comparative advantage in producing that good.
• D)The gains from specialization and trade are based not on comparative advantage but on absolute advantage.

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Definitions:

Relevance

The quality of information that indicates the information makes a difference in a decision.

Financial Statements

Documents presenting the financial activities and condition of a business, including statements like profit and loss accounts, and balance sheets.

General-Purpose

Designed or suitable for a range of uses or applications rather than a specific one.

External Users

Individuals or entities outside of a company who use its financial information, such as investors, creditors, or regulatory agencies.