Allowing Free Trade Can Lead to Greater Output Because of the Principle

question 24

Multiple Choice

Allowing free trade can lead to greater output because of the principle of:

• A)​absolute advantage.
• B)​rule of 70.
• C)​comparative advantage.
• D)​scarcity.

---

Definitions:

Marginal Ordinary Income Tax Rate

The rate at which the next dollar of taxable income is subjected to tax, applying to ordinary income such as wages and salaries.

Tax Rate

The percentage at which income or financial transactions are taxed by the government.

Compensation

Compensation encompasses the payment or benefit given to employees and executives, including salaries, wages, bonuses, and other perks.

Exempt Income

Income that is not taxable under federal or state tax law.