The Law of Comparative Advantage States That _____

question 13

Multiple Choice

The law of comparative advantage states that _____

• A) each country should specialize in producing the good with the lowest opportunity cost.
• B) a country that is able to produce something using fewer resources than other countries would gain from specialization and trade.
• C) international trade barriers slow the introduction of new goods and better technologies.
• D) countries can gain from trade if production is subject to economies of scale.
• E) countries must agree on how much of one good exchanges for another.

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Definitions:

Bank Statement

A summary of financial transactions that occurred over a period of time on a bank account held by a person or business with a financial institution.

Depositor's Account

A banking account that holds funds deposited by an individual or entity.

Balance Per Books

The amount of money reported in a company's financial records or books.

Bank Reconciliation

The practice of ensuring that the figures in an organization's financial records for a cash account are in agreement with the relevant details on a bank statement.