How Does Trade Affect the Well-Being of the Nations Involved

question 192

Multiple Choice

How does trade affect the well-being of the nations involved?

• A) Trade makes every nation better off.
• B) Trade makes exporting nations better off and importing nations worse off.
• C) Trade makes a nation better off only if the nation cannot produce that good itself.
• D) Trade makes rich nations better off and poor nations worse off.

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Definitions:

Revenue Accounts

Accounts recording the income a company generates from its operations, not related to its investments or other sources.

Gain Accounts

Accounts reflecting increases in equity, other than those relating to contributions from equity participants, typically from transactions and other events affecting the entity.

Debited

To be debited means an amount has been recorded on the left-hand side of a financial account, indicating an increase in assets or a decrease in liabilities.

Insurance Policy

A contract between an insurer and a policyholder that specifies the terms under which the insurer agrees to compensate the policyholder for specified losses.