If a Country Has

question 272

Multiple Choice

If a country has

• A) an absolute advantage in producing a good, it definitely also has a comparative advantage in producing that good.
• B) an absolute advantage in producing a good, it might or might not have a comparative advantage in producing that good.
• C) a comparative advantage in production of a good, it must also have an absolute advantage in producing that good.
• D) an absolute advantage in producing a good, it definitely will not have a comparative advantage in producing that good.
• E) None of the above answers is correct.

---

Definitions:

Unsold Units

Inventory items that were not sold during a specific period and are carried over to the next period.

Operating Efficiency

A measure of how well a company uses its resources to produce outputs, often assessed by comparing inputs to outputs in production processes.

Absorption Costing

An accounting method that includes all manufacturing costs, direct and indirect, in the cost of a product.

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and tax as well as income from non-operating activities.