A Country That Has Relatively Large Amounts of a Particular

question 52

Multiple Choice

A country that has relatively large amounts of a particular resource at its disposal

• A)will tend to have an absolute advantage
• B)will trade the resource for some good in which that country has an absolute advantage
• C)will tend to have a comparative advantage in goods that make heavy use of that resource
• D)will trade the resource for some good in which that country has a comparative advantage
• E)will tend to have a low exchange rate

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Definitions:

Direct Cost

A cost that can be directly traced to the production of specific goods or services, such as raw materials and labor.

Cost Object

Any item for which a separate measurement of costs is desired, such as products, services, projects, customers, or activities.

Motor Vehicles

Wheeled transportation vehicles powered by an internal combustion engine or electric motors, used for the conveyance of people or goods.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been purchased by consumers or clients.