In a Two-Good,two Country World,if One Country Has a Comparative

question 77

True/False

In a two-good,two country world,if one country has a comparative advantage in the production of one good,it can benefit by trading with the other country.

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Definitions:

Financial Basis

The underlying value or cost used for tax purposes, to calculate capital gain or loss upon the sale of an asset, including adjustments for improvements, depreciation, and costs of sale.

Pay Back

The process of returning or repaying borrowed funds, especially the principle amount of a loan.

Accounting Break-Even

The point at which total costs and total revenues are exactly equal, resulting in neither profit nor loss.

Net Income

The net income of a company once all costs and taxes are subtracted from its revenues.