The Basis for Free Trade Is the Concept of

question 1

Multiple Choice

The basis for free trade is the concept of

• A)absolute advantage.
• B)differences in natural resources and climate.
• C)differences in nominal wages.
• D)comparative advantage.

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Definitions:

Cash Dividend

A payout of a company's earnings to its shareholders in the form of cash.

AMT

Alternative Minimum Tax, a parallel tax system designed to ensure that individuals and corporations pay at least a minimum amount of taxes.

Alternative Minimum Tax

A parallel tax system designed to ensure that individuals and corporations that benefit from certain exemptions, deductions, or credits pay at least a minimum amount of tax.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, entering into contracts, and being sued.