Examples of Comparative Advantage Show How Trade Between Two Countries

question 182

Multiple Choice

Examples of comparative advantage show how trade between two countries can make each better off.Compared to their pre-trade positions,trade makes both countries better off because in each country

• A)total employment is greater.
• B)total consumption of goods is greater.
• C)wages are higher.
• D)total welfare is greater.

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Definitions:

Operating Expense

The costs associated with the day-to-day operations of a business, excluding the costs of goods sold.

Manufacturing Process

Involves the steps through which raw materials are transformed into a final product, applying various techniques and methods.

Income Statement

A financial report that shows the company's revenues, expenses, and profits or losses over a specific period of time.

Inventory Inspection Costs

Expenses associated with the verification and checking of goods in inventory for quality and quantity control.