Which of the Following Is Not Correct

question 478

Multiple Choice

Which of the following is not correct?

• A)Economists are generally united in their support of free trade.
• B)The conclusions of Adam Smith and David Ricardo on the gains from trade have held up well over time.
• C)David Ricardo argued that Britain should not restrict imports of grain.
• D)Economists' opposition to trade restrictions is still based largely on the principle of absolute advantage.

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Definitions:

Inventory Increase

An rise in the quantity or value of goods held by a company for the purpose of sale in the normal course of business.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly involved in creating the good.

Accounts Payable Decrease

A reduction in the amount a company owes to its suppliers or vendors, indicating payments have been made.

Direct Method

A approach to cash flow statement preparation where actual cash receipts and payments are reported, instead of adjusting net income.