If a Country Has the Comparative Advantage in Producing a Product

question 38

True/False

If a country has the comparative advantage in producing a product, then that country must also have the absolute advantage in producing that product.

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Definitions:

Credit Balance

An accounting term that signifies a positive balance in a liability, revenue, or equity account, which increases on the credit side and decreases on the debit side.

Petty Cash Fund

A nominal sum of cash reserved for quick payments of assorted trivial expenses.

Replenishing

Refers to the process of adding stock or supplies to bring quantities back up to predetermined levels.

Debit To Cash

An accounting entry that increases the cash balance in a company's books, reflecting an influx of money.