Comparative Advantage Is

question 307

Multiple Choice

Comparative advantage is

• A) when a country can produce a good at a lower opportunity cost compared to other countries.
• B) when a country can produce all goods more quickly than any other country.
• C) when the production possibilities curve shifts outward to the right.
• D) only for individuals and not countries.

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Definitions:

Depreciation Expense

The distribution of a physical asset's cost over its lifespan to account for depreciation or becoming outdated.

Building

A structure with a roof and walls, such as a house, school, or factory, constructed as a place for people to live, work, or carry out activities.

Adjustment

A change made to a financial record to correct or update the information.

Supplies

Items used in the operation of a business that are not directly associated with the products or services being sold, such as office supplies.