If Nation a Can Produce a Product at a Lower

question 45

Multiple Choice

If nation A can produce a product at a lower opportunity cost per unit than nation B,nation A

• A)has a specialization advantage.
• B)has an absolute advantage.
• C)has a comparative advantage.
• D)has a production advantage.

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Definitions:

Financial Information

Data concerning the financial status or operations of an entity, including statements and transactions.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity position by comparing its most liquid assets, excluding inventories, against its short-term liabilities.

Financial Information

Data related to the financial status of an entity, including balance sheets, profit and loss statements, and cash flow reports.

Days' Sales in Inventory

A financial metric measuring the average number of days a company takes to turn its inventory into sales.