Comparative Advantage Occurs When an Individual's Opportunity Cost for Producing

question 129

True/False

Comparative advantage occurs when an individual's opportunity cost for producing the same good or service is lower than that of another individual.

---

Definitions:

Total Asset Turnover

An analysis ratio that evaluates the effectiveness of a corporation's assets in producing sales turnover.

Liquidity Ratio

Financial metrics used to assess a company's ability to meet its short-term obligations using its most liquid assets.

Net Working Capital Turnover

A ratio that measures how effectively a company uses its net working capital to generate sales.

Sales

The total revenue a company earns from selling goods or services over a specific period.