A Trade Discount Is

question 235

Multiple Choice

A trade discount is:

• A)A term used by a purchaser to describe a cash discount given to customers for prompt payment.
• B)A reduction in selling price below the list price given by a manufacturer or wholesaler.
• C)A term used by a seller to describe a cash discount granted to customers for prompt payment.
• D)Also called a Discount Lost.
• E)Also called a rebate.

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Definitions:

Gains From Trade

The benefits obtained by countries or individuals from engaging in international trade, allowing for specialization and more efficient production.

Fewer Resources

A decrease in the availability of inputs required for production or consumption, often leading to increased competition or prices.

Production Possibility Frontier

A graph that shows the highest possible mix of two goods that can be made with the existing resources and technology.

Opportunity Cost

The price paid for not choosing the next most favorable option when making a decision or opting for one alternative over another.