An Economic Theory About International Trade That Is Based on the Assumption

question 53

Multiple Choice

An economic theory about international trade that is based on the assumption that there are only two countries trading two goods

• A)is useless,since the real world has many countries trading many goods.
• B)can be useful only in situations involving two countries and two goods.
• C)can be useful in the classroom,but is useless in the real world.
• D)can be useful in helping economists understand the complex world of international trade involving many countries and many goods.

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Definitions:

Transferor

An individual or entity that transfers rights, ownership, or interests in assets to another party.

HDC (Holder in Due Course)

A legal term referring to someone who has acquired a negotiable instrument in good faith for value and without notice of any defect.

Defective Instrument

A legal or financial document that contains errors, omissions, or flaws rendering it invalid or ineffective.

Dishonor

To refuse to accept or pay a draft or a promissory note when it is properly presented. An instrument is dishonored when presentment is properly made and acceptance or payment is refused or cannot be obtained within the prescribed time.