The Idea of Dynamic (I

question 158

Multiple Choice

The idea of dynamic (i.e. changing) comparative advantage is the basis for which of the following arguments for protection from foreign competition?

• A) the cheap foreign labor argument
• B) the infant-industry argument
• C) the dumping argument
• D) the saves jobs argument

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Definitions:

Land Purchase

The acquisition of land as a fixed asset with the intent of using it for business operations or investment purposes.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.

Inventory

Goods or materials that a business holds for the purpose of resale or production.

Prepaid Insurance

An asset account that represents insurance paid in advance, which is expensed as it is used or over time.