The Simple Comparative Advantage Model Assumed That Trade Does Not

question 80

True/False

The simple comparative advantage model assumed that trade does not change a country's stock of resources or the efficiency with which it utilizes those resources.

---

Definitions:

Freight In

The cost of transporting goods into a business, typically considered as part of the cost of goods purchased.

Quantity Discounts

Price reductions given to customers who purchase large quantities of a product, encouraging bulk buying.

Perpetual Inventory System

A process in accounting for inventory that instantly logs purchases or sales via computerized point-of-sale systems and enterprise asset management programs.

Journal Entry

A record in accounting that notes every financial transaction of a business in chronological order.