The Equilibrating of the Price of Labor and the Price

question 2

Multiple Choice

The equilibrating of the price of labor and the price of capital across countries when they are engaging in free trade is called

• A)the Leontief paradox.
• B)the gains from trade model.
• C)the complete specialization model.
• D)factor-price equalization.
• E)the comparative advantage model.

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Definitions:

Net Receivables

The total money owed to a company by its customers minus any provisions for bad debt.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Total Revenue

The total amount of money generated by a company from its business activities, primarily through the sale of goods and services, before any expenses are deducted.

Seasonal Inventory

Stock that is held in anticipation of seasonal peaks in demand, ensuring that a business can meet customer needs during specific times of the year.