Which of the Following Statements Is True

question 43

Multiple Choice

Which of the following statements is true?

• A) If the opportunity costs differ between two countries, there is no opportunity for mutually advantageous trade.
• B) International trade leads countries to specialize in the production of those goods for which they have an absolute, rather than a comparative, advantage.
• C) Free international trade can increase the availability of all goods and services in the countries that participate in trade.
• D) The potential costs of free trade generally outweigh the benefits.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, showing the balance of income and expenditure over the preceding period.

Period Of Time

A specific duration marked by a start and end date or time.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit or loss over a specific period of time.

Financial Position

A snapshot of a company's financial health, encompassing assets, liabilities, and equity at a given point in time.