The Principle of Comparative Advantage Implies That Trade

question 158

Multiple Choice

The principle of comparative advantage implies that trade

• A)decreases the level of world employment.
• B)shifts production possibilities curves inward.
• C)increases the amount of world production.
• D)decreases the amount of world production.
• E)decreases the amount of world consumption.

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Definitions:

Financial Planning

The process of setting objectives, assessing assets and resources, estimating future financial needs, and making plans to achieve monetary goals.

Pro Forma Statement

A financial report created by making assumptions about events and transactions that have not yet taken place.

Financing Policies

Guidelines or principles that a company uses to decide how to finance its activities, including debt and equity financing choices.

Dividend Policies

The guidelines a company follows to decide how much it will pay out to shareholders in dividends.