The Basis for Trade Is Comparative Advantage, Not Absolute Advantage

question 56

True/False

The basis for trade is comparative advantage, not absolute advantage.

---

Definitions:

Dividend Yield

A metric indicating the proportion of a company's annual dividends in relation to its share price.

Par Preferred Stock

Preferred stock with a nominal value assigned in the corporate charter, which determines the issue price and face value for dividend calculations.

Par Common Stock

The nominal or face value assigned to a share of common stock, as stated in the corporate charter.

Market Value

The immediate market value at which one can buy or sell an asset or service.