A Country Has an Absolute Advantage in the Production of a Product

question 52

Multiple Choice

A country has an absolute advantage in the production of a product when it

• A) has the capability to produce the product within its boundaries.
• B) is more efficient than any other country in producing it.
• C) has the largest domestic demand for the product.
• D) has access to the raw materials needed to produce the product.

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Definitions:

Depreciation Expense

Distributing the cost of a material asset methodically across its productive life.

Units-Of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces or hours it is used.

Salvage Value

An asset's projected financial value at the end of its viability period.

Depreciation Expense

An accounting method for allocating the cost of a tangible asset over its useful life, representing the asset's consumption, wear and tear, or obsolescence.