Which of the Following Statements Is True Regarding Comparative Advantage

question 30

Multiple Choice

Which of the following statements is true regarding comparative advantage?

• A)Comparative advantage is becoming rare these days.
• B)Ensuring that its people are well educated is another way a nation can develop a comparative advantage in skilled human resources.
• C)Developing countries possess no comparative advantage.
• D)A nation must first possess an absolute advantage in a particular area before it can gain a comparative advantage.

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Definitions:

Asset Account

An account recorded on the balance sheet that represents items of value owned by a company, such as cash, inventory, buildings, and equipment.

Straight-line Method

A method of calculating depreciation by uniformly distributing the cost of an asset minus its salvage value over its useful life.

Gain on Sale

The financial benefit that occurs when the selling price of an asset exceeds its original purchase price.

Loss on Sale

Loss on Sale occurs when the selling price of an asset is less than its carrying amount on the books, resulting in a financial loss.