Comparative Advantage Is Related Most Closely to Which of the Following

question 37

Multiple Choice

Comparative advantage is related most closely to which of the following?

• A)output per hour
• B)opportunity cost
• C)efficiency
• D)bargaining strength in international trade

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Definitions:

Consolidation Worksheet

A tool used in the preparation of consolidated financial statements that helps in combining the financial information of parent and subsidiary entities.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Retained Earnings

The cumulative amount of net income earned by a company that is kept within the company for reinvestment rather than being paid out as dividends to shareholders.

Accrual-Based Net Income

A measure of a company's financial performance that includes all earned revenues and incurred expenses, regardless of when cash transactions occur, according to the accrual principle.