An Economy Is Said to Have a Comparative Advantage in the Production

question 297

Multiple Choice

An economy is said to have a comparative advantage in the production of one good if it:

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

---

Definitions:

Qualitative Data

Non-numerical information that describes characteristics, attributes, or properties of objects, people, or events.

Timeframe

A specific period of time in which something is supposed to happen or tasks are expected to be completed.

International Convergence

The effort to standardize accounting standards and practices across different countries to improve transparency and comparability.

U.S. Accounting Standards

The principles, standards, and procedures set forth by governing bodies in the U.S., such as the Financial Accounting Standards Board (FASB), to guide the preparation of financial statements.