Assume a Nation Has a Comparative Advantage in the Production

question 81

Multiple Choice

Assume a nation has a comparative advantage in the production of clothing.If the value of this country's currency rises,_____.

• A)its comparative advantage will decrease
• B)its comparative advantage will stay the same
• C)its comparative advantage will increase
• D)an absolute advantage will be created

---

Definitions:

Target Profit

The goal set for the amount of net income a company plans to achieve at a specific time.

Units Sold

The quantity of product units that have been sold during a particular time period.

Contribution Format

The contribution format is a financial statement layout that separates fixed and variable costs, allowing for easier calculation of contribution margin and breakeven analysis.

Net Operating Income

The profit realized from a business's operations after subtracting operating expenses from revenue.