According to the Concept of Comparative Advantage, a Good Should

question 333

Multiple Choice

According to the concept of comparative advantage, a good should be produced in that nation in which

• A) domestic opportunity cost is greatest.
• B) domestic opportunity cost is the smallest.
• C) money is used.
• D) terms of trade are maximized.

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Definitions:

Depreciated

The reduction in the recorded cost of a fixed asset in a manner that allocates its cost over the useful life of the asset.

Land Account

An account on the balance sheet that shows the cost of land owned by a company, not depreciated since land has an unlimited useful life.

Incidental Costs

Minor or secondary expenses associated with a primary transaction or activity.

Assessments

Evaluations or appraisals of property, performance, or ability for the purpose of taxation or determining value.