Trade Due to Comparative Advantage Tends to Be

question 152

Multiple Choice

Trade due to comparative advantage tends to be

• A)intraindustry.
• B)more important than trade due to economies of scale.
• C)multinational.
• D)just like trade due to economies of scale.
• E)interindustry.

---

Definitions:

Fixed Assets

Tangible assets purchased for long-term use and not likely sold in the normal course of business, such as buildings, machinery, and equipment.

Long-Lived Assets

Assets that provide economic benefits to a business over a prolonged period, typically more than one year, such as buildings, machinery, and equipment.

Fixed Assets

Enduring assets with physical presence utilized in business activities, not foreseen to be liquidated or changed to cash within twelve months.

Depreciable Cost

The difference between a fixed asset’s initial cost and its residual value.