When,in Our Analysis of the Gains and Losses from International

question 146

Multiple Choice

When,in our analysis of the gains and losses from international trade,we assume that a country is small,we are in effect assuming that the country

• A)cannot experience significant gains or losses by trading with other countries.
• B)cannot have a significant comparative advantage over other countries.
• C)cannot affect world prices by trading with other countries.
• D)All of the above are correct.

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Definitions:

Cost Of Goods Sold

The immediate expenses related to the manufacturing of products a company sells.

Ending Inventory

The sum of the value of products ready to be sold at the conclusion of a financial period.

Inventory Turnover Rate

A measure of how often a company sells and replaces its stock of goods within a period, indicating the efficiency of sales and inventory management.

Net Income

The net income of a business following the deduction of all expenditures and taxes from its total revenue.