Trade Restrictions

question 103

Multiple Choice

Trade restrictions:

• A) increase the cost or difficulty of making exchanges across national borders.
• B) discourage people from fully taking advantage of lower prices in other countries.
• C) can explain why purchasing power parity doesn't typically hold.
• D) all of the above statements are true.

---

Definitions:

Biological Asset

A living animal or plant.

AASB 141

Refers to the accounting standard issued by the Australian Accounting Standards Board that deals with agriculture and requires biological assets to be measured at their fair value less estimated point-of-sale costs.

IAS 41

An International Accounting Standard that outlines the accounting for agricultural activity, including the transformation of biological assets (living plants and animals) into agricultural produce.

Economic Benefits

The benefits obtained from the use of goods or services that contribute to an entity's cash flow.