The Existence of Any "Gains from Trade" Relies on

question 83

Multiple Choice

The existence of any "gains from trade" relies on

• A)closed economies.
• B)absolute advantage.
• C)comparative advantage.
• D)both absolute and comparative advantage.
• E)tariffs

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Definitions:

Equity Method

An accounting technique used to record investments in other companies when the investing company has significant influence but does not control the investee.

Total Excess Amortization

Refers to the amount of amortization that exceeds the net carrying value of the intangible asset being amortized.

Fair-Value Allocations

The process of assigning fair values to different assets and liabilities when a company is acquired, as part of the purchase price allocation.

Net Income

The net income a business earns following the deduction of all costs and taxes from its gross revenue.