In a Situation of Free Trade

question 6

Multiple Choice

In a situation of free trade,

• A)countries with comparative advantage will export more than countries with comparative disadvantage import.
• B)the total quantity of an item exported will be greater than the total quantity imported.
• C)importing countries will always produce some good, so that total quantity imported is less than total quantity exported.
• D)the total quantity of an item exported will equal the total quantity imported.

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Definitions:

Financial Planning Process

A comprehensive evaluation of an individual's or organization's current and future financial state by using currently known variables to predict future cash flows and asset values.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period to ensure a company has sufficient liquidity.

Financial Statements

Formal records of a company's financial activities and condition, including balance sheet, income statement, and cash flow statement.

Fixed Assets

Fixed Assets, also known as non-current assets, are long-term tangible assets held for business use and not expected to be converted into cash in the upcoming year, such as buildings, machinery, and vehicles.