If Domestically 3X=3Y in Nation A,while 1X=1Y Domestically in Nation

question 1

Multiple Choice

If domestically 3X=3Y in nation A,while 1X=1Y domestically in nation B:

• A)there will be no trade between the two nations
• B)the relative price of X is the same in both nations
• C)the relative price of Y is the same in both nations
• D)all of the above

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Definitions:

Sales Commissions

Compensation paid to sales employees, usually calculated as a percentage of the sales they generate.

Freight In

The cost of transporting goods into a business, typically considered as part of the cost of goods purchased.

Quantity Discounts

Price reductions given to customers who purchase large quantities of a product, encouraging bulk buying.

Perpetual Inventory System

A process in accounting for inventory that instantly logs purchases or sales via computerized point-of-sale systems and enterprise asset management programs.