According to the Principle of Comparative Advantage, If a Rich

question 189

Multiple Choice

According to the principle of comparative advantage, if a rich country trades with a poor country, then

• A) the rich country will benefit and the poor country will lose.
• B) the rich country will lose and the poor country will benefit.
• C) both countries will benefit.
• D) neither of the countries will benefit.

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Definitions:

Legal Restrictions

Laws or regulations that limit or dictate the actions that individuals or organizations can take within a legal framework.

Treasury Stock

Shares of a company's own stock that have been reacquired and held in the company's treasury for future use.

Stockholders' Equity

Represents the ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.

Par Common Stock

The stated face value of a share of common stock, which has no direct impact on its market value.