International Economists Cannot Discuss the Effects of International Trade or Recommend

question 23

Multiple Choice

International economists cannot discuss the effects of international trade or recommend changes in government policies toward trade with any confidence unless they know

• A)their theory accounts for China's unique position in international trade.
• B)their theory passes the "reasonable person" legal criteria.
• C)their theory is internally consistent.
• D)their theory is good enough to explain the international trade that is actually observed.
• E)their theory is the best available.

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Definitions:

Inventory costing method

A system or technique used by companies to assign costs to inventory and goods sold; common methods include FIFO, LIFO, and average cost.

Ending inventory

The total value of goods available for sale at the end of an accounting period after all sales transactions have been accounted for.

Current prices

Prices at which goods and services are being sold in the present market, reflecting the current economic conditions.

LIFO

The "last in, first out" method of inventory valuation, where the most recently acquired items are considered sold first, used in periods of inflation to increase cost of goods sold and reduce taxes.