On What Basis Are the Gains from Trade Divided Between

question 47

Multiple Choice

On what basis are the gains from trade divided between countries?

• A)According to the terms of trade.
• B)According to international trade agreements.
• C)According to the quantity of resources possessed by each.
• D)According to each country's comparative advantage.

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Definitions:

Variable Selling Cost

Costs that change in proportion to the volume of goods sold, such as commissions or shipping charges.

Financial Advantage

The benefit gained in financial terms, often seen as increased profits, cost savings, or return on investment.

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the level of production, such as rent, salaries of managerial staff, and property taxes.

Dropping Product

The decision made by a company to discontinue producing and selling a specific product due to factors like poor sales, strategic realignment, or cost inefficiency.