Which of the Following Statements About Absolute and Comparative Advantage

question 84

Multiple Choice

Which of the following statements about absolute and comparative advantage is true?

• A)A country may have a comparative advantage but not an absolute advantage in the production of a good.
• B)A country must have the comparative advantage in the production of at least one good.
• C)A country may have the absolute advantage in the production of all goods.
• D)All of these statements are true.

---

Definitions:

Received Payment

The money received by an individual or a company for goods delivered or services rendered.

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity, serving as the foundation of the double-entry bookkeeping system.

Customer on Account

Transactions where a customer purchases goods or services on credit, creating an account receivable for the business.

Financial Statement

A formal record of the financial activities of a business, person, or other entity, presenting its financial performance and position at a given point in time.