We Benefit from Trade If We Are Able to Obtain

question 71

Multiple Choice

We benefit from trade if we are able to obtain a good from a foreign country:

• A)that has a very low domestic demand.
• B)the production of which requires a steady supply of unskilled labor.
• C)by giving up less of other goods than we would have to give up to obtain the good at home.
• D)by giving up more of other goods than we would have to give up to obtain the good at home.
• E)that has a substantial number of substitutes in the domestic market.

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Definitions:

Consigned Merchandise

Goods that are sent by their owner (consignor) to an agent (consignee), who tries to sell the goods for a fee without taking ownership.

Buying Habits

Patterns or tendencies that consumers exhibit when making purchasing decisions.

Ending Inventory

The total value of goods available for sale at the end of an accounting period.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating its financial health over a specific period.