Using the Direct Method, Major Classes of Investing and Financing

question 38

True/False

Using the direct method, major classes of investing and financing activities are listed in the operating activities section.

---

Definitions:

Autarky Price

The price of goods in a closed economy that does not engage in international trade.

Domestic Supply

The total amount of goods and services produced within a country that is available for purchase.

Domestic Demand

The total demand for goods and services within a country's borders, excluding exports and including imports.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its trading partners.