Countries Gain from Specializing in Producing Goods in Which They

question 87

Multiple Choice

Countries gain from specializing in producing goods in which they have ________ and trading for goods in which other countries have ________.

• A)a comparative advantage; an absolute advantage
• B)an absolute advantage; an absolute advantage
• C)a comparative advantage; a comparative advantage
• D)an absolute advantage; a comparative advantage

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Definitions:

Accounts Receivable Turnover

A financial metric indicating how many times a company's receivables are converted to cash in a given period.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, reflecting the efficiency of inventory management.

Cost of Goods Sold

The cost of goods sold (COGS) represents the direct costs associated with the production of goods sold by a company, including materials and labor costs.