For Any Country,if the World Price of Copper Is Higher

question 18

Multiple Choice

For any country,if the world price of copper is higher than the domestic price of copper without trade,that country should

• A)export copper,since that country has a comparative advantage in copper.
• B)import copper,since that country has a comparative advantage in copper.
• C)neither export nor import copper,since that country cannot gain from trade.
• D)neither export nor import copper,since that country already produces copper at a low cost compared to other countries.

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Definitions:

Taxable Income

The portion of an individual's or corporation's income used to determine how much tax is owed to the government.

Internal Rate

An implied interest rate that equates the present value of an investment's expected future cash inflows to its initial cost.

Investment Proposals

Formal suggestions or plans put forward for consideration, aimed at initiating a financial investment.

Discount Rate

The discount rate applied in the evaluation of the present value of future cash flows in discounted cash flow analysis.