When Two Countries Trade with One Another,it Is Most Likely

question 5

Multiple Choice

When two countries trade with one another,it is most likely because

• A)the wealthy people in each of the two countries are able to benefit,through trade,by taking advantage of other people who are poor.
• B)some people involved in the trade do not understand that one of the two countries will become worse-off because of the trade.
• C)the opportunity costs of producing various goods are identical for the two countries.
• D)the two countries wish to take advantage of the principle of comparative advantage.

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Definitions:

Voting Shares

Shares that give the shareholder the right to vote on company matters, such as electing directors or approving acquisitions, indicating a degree of control in the company.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Carrying Amount

The book value of assets and liabilities as reported in the financial statements, factoring in depreciation, amortization, and impairment.

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate policy and the selection of board members.