The _____ Theory Attributes the Comparative Advantage of a Nation

question 59

Multiple Choice

The _____ theory attributes the comparative advantage of a nation to its factor endowments.

• A) absolute advantage
• B) comparative advantage
• C) factor price
• D) Heckscher-Ohlin
• E) mercantilism

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Definitions:

Gain

The profit realized from the sale of assets or investments when the selling price exceeds the purchase price.

Indirect Method

A way of reporting cash flows from operating activities that begins with net income and adjusts for changes in balance sheet accounts to calculate cash provided by operations.

Noncash Investing

Investment activities that do not involve immediate cash transactions, such as acquiring assets through exchange or issuing stock for assets.

Cash Dividend

A cash distribution of earnings by a corporation to its shareholders.