Application of the Principle of Comparative Advantage Leads To

question 15

Multiple Choice

Application of the Principle of Comparative Advantage leads to:

• A) greater specialization of labor and other factors of production.
• B) less specialization of labor and other factors of production.
• C) societies without any specialization of labor.
• D) lower total output.

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Definitions:

Trial Balance

A financial document showing the amounts held in each of a company's main accounting records at a certain date.

Chart of Accounts

A systematic list of all ledger account titles and numbers used by a company, organized to support the compilation of financial statements.

Miscellaneous Expense

Small and infrequent costs that do not fit into other specific expense categories in a company's financial statements.

Accounts Payable

Liabilities representing amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.