If a Country Has an Absolute Advantage in Producing a Good,_____

question 144

Multiple Choice

If a country has an absolute advantage in producing a good,_____.

• A)the country is able to produce that good using fewer resources than other countries
• B)the opportunity cost of producing the good is the lowest in that country
• C)the productivity of workers in that country is lower than that in all countries
• D)the country produces as many units of the good as demanded domestically
• E)countries of the same size have the same opportunity cost of producing both goods

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Definitions:

Financial Statements

Documents that present the financial activities and conditions of a business or individual, including balance sheets, income statements, and cash flow statements.

Liabilities

Financial obligations or debts owed by a business to external parties or individuals, which must be repaid at a future date.

Wages Owed

The total amount of compensation that a company owes to its employees for work performed but not yet paid.

Cash Account

A ledger account that represents the amount of cash a company has on hand at any given time.