A Country Has a Comparative Advantage in a Good If

question 60

Multiple Choice

A country has a comparative advantage in a good if

• A)It can produce more of the good than another country.
• B)It can produce a good at a lower opportunity cost relative to another country.
• C)It can specialize only in two goods.
• D)It always has an absolute advantage in the production of the good.

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Definitions:

Journal Entry

is a record in accounting that notes the details of a financial transaction, including the accounts affected, debits, and credits.

Prepaid Insurance

A current asset account that represents payments made for insurance services that will be consumed in future periods.

Posting Reference

An alphanumeric code or number used in accounting to indicate the ledger account that a journal entry has been posted to.

Journal Entry

A record of a financial transaction in an accounting system, detailing the accounts affected and the amounts debited and credited.