Which of the Following Statements Is True Regarding Absolute Advantage

question 158

Multiple Choice

Which of the following statements is true regarding absolute advantage?

• A) Developing countries possess no absolute advantage.
• B) A nation must first possess a comparative advantage before it can possess an absolute advantage.
• C) Absolute advantage is becoming rarer these days.
• D) Every country possesses an absolute advantage.

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, rather than when earned or incurred.

Indirect Method

A way of presenting the cash flow statement where net income is adjusted for the effects of transactions that do not involve cash.

Exchange

is a marketplace where securities, commodities, derivatives, or other financial instruments are traded.

Treasury Stock

Treasury stock refers to previously issued shares that have been repurchased by the issuing company, reducing the amount of outstanding stock on the open market.