A Country That Has an Absolute Advantage in Producing All

question 209

Multiple Choice

A country that has an absolute advantage in producing all goods will

• A) have a comparative advantage in some goods but not all.
• B) produce all goods at lowest opportunity cost.
• C) have a comparative advantage in all goods.
• D) not gain from specialization and trade.

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Definitions:

Error

A mistake in recording transactions or in financial statements, often requiring adjustments or corrections.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

Journalized

The process of recording financial transactions in a journal before they are posted to ledger accounts.

Trial Balance

A financial statement that lists all the balances of a company's general ledger accounts at a specific point in time, ensuring that debits equal credits.