One Way to Measure the Importance of Trade to a Nation

question 120

Multiple Choice

One way to measure the importance of trade to a nation is to examine ________.

• A) its human development index relative to its CPI
• B) the availability of natural resources that provides absolute advantage
• C) its comparative advantage relative to those of its neighbors
• D) the volume of an economy's trade relative to its total output

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Definitions:

Break-Even Level Of Sales

The amount of revenue from sales that is exactly sufficient to cover both fixed and variable costs, resulting in zero net profit or loss.

Variable Cost

A cost that varies directly with the level of production or sales volume.

Net 30 Policy

A payment term indicating that payment is due in full 30 days after the invoice date.