If a Nation Does Not Have an Absolute Advantage in Producing

question 45

Multiple Choice

If a nation does not have an absolute advantage in producing anything, it

• A)​can have no comparative advantage either.
• B)​will have a comparative advantage in the activity in which its disadvantage is the least.
• C)​will benefit if it refuses to trade.
• D)​will export raw materials and import finished products.

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods or services, often used as a basis for assigning manufacturing overhead costs to products.

Budgeted Sales

An estimate of the sales revenue a company plans to achieve in a specified period, often part of a larger budget plan.

Accounts Receivable

Amounts owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the manufacturing process.