An Economy Is Said to Have a Comparative Advantage If

question 4

Multiple Choice

An economy is said to have a comparative advantage if it:

• A)can produce more of all goods than another economy.
• B)can produce less of all goods than another economy.
• C)has the highest cost of producing a particular good.
• D)has the lowest cost of producing a particular good.

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Definitions:

Inventory Control

The processes and procedures used to manage the ordering, storage, and use of components that a company will use in the production process or the management of stock available for sale.

Investment Turnover

A ratio used to measure the efficiency of a company's use of its investments in generating sales revenue, indicating how well the company is utilizing its assets.

Return On Investment

A metric for determining an investment's profitability or efficiency, achieved by dividing the net profit by the investment's total cost.

Invested Assets

Resources or funds committed to ventures with the expectation of generating income or profit.