The Following Question Are Based on the Following Diagrams

question 22

Multiple Choice

The following question are based on the following diagrams:

-If the countries should trade,which chemical/steel price ratio will most likely prevail?

• A) 1 ton of chemicals/0.33 ton of steel
• B) 1 ton of chemicals/0.40 ton of steel
• C) 1 ton of chemicals/0.50 ton of steel
• D) 1 ton of chemicals/0.55 ton of steel
• E) 1 ton of chemicals/1 ton of steel

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Definitions:

Long-Term

Refers to holding an asset for more than a year before disposal, affecting the calculation of capital gains and losses for tax purposes.

Short-Term Gain

A profit from the sale of an asset held for one year or less.

Investment Portfolio

An assortment of financial assets including stocks, bonds, commodities, cash, and equivalents, such as mutual funds and exchange-traded funds (ETFs).

Preferential Tax Treatment

Special tax rules that result in a lower tax rate or beneficial tax conditions for certain types of income or taxpayers.