Which of the following statements is true of the theory of absolute advantage?
A. It was advocated by British economist David Ricardo.
B. It opened the floodgates for the free trade movement.
C. It suggests that international trade is a zero-sum game.
D. It is more realistic and useful than comparative advantage when applied in the real world.
Answer: B
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Assuming increasing-cost conditions, trade between two countries would NOT be likely if they have
a. identical demand conditions but different supply conditions. b. identical supply conditions but different demand conditions. c. different supply conditions and different demand conditions. d. identical demand conditions and identical supply conditions.
Explain the purpose of using drawings or maps in your speeches.
What will be an ideal response?
Political risks can be broken down into three basic categories. These are:
A. ownership risks, operational risks, and economic risks. B. operational risks, bureaucratic risks, and transfer risks. C. transfer risks, operational risks, and ownership-control risks. D. transfer risks, ownership risks, and labor risks.
Harding Company Accounts payable $ 40,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 30,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 110,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 30,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000 Based on the data for Harding Company, what is the quick ratio, rounded to one decimal point?
A. 2.6 B. 0.9 C. 2.7 D. 1.7