It Is Possible to Have an Absolute Advantage in Producing

question 166

True/False

It is possible to have an absolute advantage in producing a good or service without having a comparative advantage.

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Definitions:

Present Value

The present worth of a sum of money or cash flows expected in the future, based on a certain rate of return.

Cash Flow

The combined value of financial transactions into and out of an enterprise, crucially affecting its cash reserves.

Present Value

is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Discount Rate

The rate of interest utilized to calculate the current value of future cash flows in a discounted cash flow assessment.