If the Residents of a Country Specialize in a Good

question 18

Multiple Choice

If the residents of a country specialize in a good in which they have a comparative advantage and trade with residents in another nation, the residents in the first country

• A)can consume more than they could without trade.
• B)can produce more than they could without trade.
• C)will have a lower standard of living.
• D)will be exploited by the second nation.

---

Definitions:

Work In Process

Partially finished goods that are in various stages of production but are not yet completed.

Process Cost Systems

Accounting systems used to apply costs to similar products that are mass-produced in a continuous fashion, enabling consistent unit cost calculation.

Similar Products

Goods that satisfy the same customer needs or desires and are often interchangeable in use or consumption.

Activities Performed

The actions or operations carried out by an individual or organization in pursuit of certain objectives.