The Expansion of World Output as a Result of Trade

question 103

Multiple Choice

The expansion of world output as a result of trade is mainly due to the effects of

• A)Higher trade barriers.
• B)Improved terms of trade.
• C)Specialization according to comparative advantage.
• D)Specialization according to absolute advantage.

---

Definitions:

ROA

Return on Assets, a financial ratio indicating the profitability of a company relative to its total assets.

ROA

Return on Assets, an indicator of how profitable a company is relative to its total assets, illustrating how efficiently a company is using its assets to generate earnings.

DSO

Days Sales Outstanding refers to the average period a company requires to receive payment following a sale.

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage, calculated by dividing total liabilities by total assets.