Trade Can Make Everybody Better Off Because It

question 37

Multiple Choice

Trade can make everybody better off because it

• A)increases cooperation among nations.
• B)allows people to specialize according to comparative advantage.
• C)requires some workers in an economy to be retrained.
• D)reduces competition among domestic companies.

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal.

Write Off

The process of recognizing that a portion of a company's assets has become worthless and expensing them to the income statement.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business, whichever is longer.

Net Sales

The net sales of a company, which are calculated by deducting returns, allowances for damaged or missing items, and discounts from total sales.