-Refer to Table 3-6

question 58

Multiple Choice

-Refer to Table 3-6. If Denmark and Italy specialize and trade according to their respective comparative advantage, who gains in the short run in Denmark?

• A) owners of cheese-producing companies
• B) owners of milk-producing companies
• C) consumers who like cheese
• D) consumers who like bread

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Definitions:

Fair Value

An estimate of the market value of an asset or liability based on current market prices or valuations.

Trading Securities

Financial assets that a company holds primarily for the purpose of selling them in the short term to profit from market price changes.

Unrealized Gains

Increases in the value of assets that have not yet been sold and therefore not turned into cash.

Historical Cost

The original purchase price or cost of acquiring an asset, not adjusted for inflation or market changes.