If People Have the Same Abilities,then

question 6

Multiple Choice

If people have the same abilities,then

• A) they cannot gain from trade.
• B) they can still gain from trade if they have different tastes.
• C) they can still gain from trade as long as they specialize in different activities.
• D) they can still gain from trade only if they are facing different absolute prices.

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Definitions:

Comparative Financial Statements

Financial statements that present financial information for different periods or dates side by side to facilitate comparison.

Corporations

Are legal entities that are separate and distinct from their owners. They have the ability to enter into contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes.

Vertical Analysis

A method of financial statement analysis in which each entry is listed as a percentage of another item, typically used for income statements where entries are compared to total sales.

Total Assets

The sum of all resources owned by a company, valued according to accounting principles, including both current and non-current assets.