A Country Will Not Trade Unless

question 61

Multiple Choice

A country will not trade unless

• A)It has an absolute advantage.
• B)The terms of trade are superior to domestic opportunities.
• C)Its balance of trade is in a surplus position.
• D)The production possibilities increase.

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Definitions:

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.

Working Capital

The balance sheet accounts associated with day-to-day operating activities. Gross working capital is generally defined as current assets and net working capital as current assets minus current liabilities.

Accounts Receivable

Money owed to a company by its customers for goods or services already delivered but not yet paid for.

Inventory

Represents the goods or materials a business holds for the purpose of resale or production.