According to the Principle of Comparative Advantage, If a Rich

question 189

Multiple Choice

According to the principle of comparative advantage, if a rich country trades with a poor country, then

• A) the rich country will benefit and the poor country will lose.
• B) the rich country will lose and the poor country will benefit.
• C) both countries will benefit.
• D) neither of the countries will benefit.

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Definitions:

T Account

A graphical representation of a ledger account used in accounting to depict the effects of transactions on account balances.

Horizontal Analysis

Horizontal analysis is a financial analysis technique that compares historical financial data across different periods to identify trends and changes over time.

Balance Sheet

A report detailing a company's assets, liabilities, and equity owned by shareholders at a certain moment.

Income Statement

A report detailing a company's financial activities, including income, outgoings, and net earnings or deficits, over a particular period of time.