The United States Would Have an Absolute Advantage Compared to Canada

question 131

Multiple Choice

The United States would have an absolute advantage compared to Canada in the production of wheat if

• A) wheat sells for a higher price in the United States than in Canada.
• B) the demand for wheat is higher in the United States than in Canada.the United States.
• C) the United States uses fewer resources to produce wheat than Canada does.
• D) wheat can be produced at lower cost in terms of other goods than it could be in Canada.

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Definitions:

Cash Sales

Transactions in which goods or services are exchanged immediately for cash payment.

Credit Sales

Sales made on credit, allowing buyers to pay at a later date, usually generating accounts receivable for the seller.

Discount Period

The time frame between the date of the sale and the due date when a discount is available for payment of an invoice.

Merchandise Return

A process in which customers return purchased goods to the seller due to defects, dissatisfaction, or other reasons.