All of the Following Are Presented in the Textbook as Benefits

question 57

Multiple Choice

All of the following are presented in the textbook as benefits of free trade except:

• A) Free trade restrains the power of the state and empowers individuals
• B) Free trade brings people together across distance and cultures leading to peace
• C) Free trade makes everyone wealthier
• D) Free trade creates additional poverty
• E) Free trade encourages basic human rights

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Definitions:

NPV

Net Present Value, a calculation used to assess the profitability of an investment by summing the present values of all expected future cash flows minus the initial investment cost.

Break-even Points

The level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.

Cash Break-even

The point at which a business's cash expenses equal its cash revenues, resulting in no net cash flow.

Accounting Break-even

The point at which total revenues equal total expenses, indicating no profit or loss from operations.