If a Nation Can Produce a Good More Quickly Than

question 45

Multiple Choice

If a nation can produce a good more quickly than any other nation, that nation has a(n) :

• A) comparative advantage.
• B) absolute advantage.
• C) relative advantage.
• D) specialization advantage.

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Definitions:

Sustainable Income

The portion of earnings that can be consistently generated and expected to continue in the future, excluding any unusual or one-time profits or losses.

Transitory Income

Income that is not expected to recur regularly, often affecting financial analysis due to its non-permanent nature.

Earned Income

Income derived from active participation in a business or trade, including wages, salaries, tips, and other compensation for services rendered.

Future Services

The future work or duties to be performed under the terms of a service contract or agreement.