___________________ Theory States That a Country Can Gain from Engaging

question 103

Multiple Choice

___________________ theory states that a country can gain from engaging in trade even if it has an absolute advantage or disadvantage.

• A)Constructive advantage
• B)Comparative advantage
• C)Concentric advantage
• D)Supply and demand
• E)Relative cost advantage

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Definitions:

Net Income

The amount a company earns after deducting every cost, expense, and tax from its total income.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or undervalued.

Market Price

The present rate at which a service or asset is being traded.

Net Income

The final amount of money a company makes after removing all operational costs, taxes, and additional expenses from the overall income.