If One Person Has the Absolute Advantage in Producing Both

question 119

Multiple Choice

If one person has the absolute advantage in producing both of two goods, then that person

• A)must also have a comparative advantage in both goods
• B)cannot benefit from trade
• C)cannot have a comparative advantage in either good
• D)will have the comparative advantage in only one good
• E)should specialize in the production of both goods

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Definitions:

Monitor and Control

Processes involved in tracking a project's progress and making adjustments to ensure objectives are met efficiently.

Double-Entry Bookkeeping System

An accounting method that records every financial transaction in at least two accounts, ensuring that the accounting equation (assets = liabilities + owner's equity) remains balanced.

Single-Entry System

An accounting method where each transaction is recorded only once, either as an income or an expense, not used in double-entry bookkeeping.

Accounting Documents

Records that encapsulate financial transactions and positions relevant to a business or individual.