In General,if Country a Is Accumulating Capital at a Faster

question 101

Multiple Choice

In general,if country A is accumulating capital at a faster rate than country B,then country A

• A)will soon have a comparative advantage in the production of most goods.
• B)is using a larger proportion of resources to produce consumption goods.
• C)will have a production possibilities frontier that is shifting outward faster than country B's.
• D)will have a higher rate of inflation than country B.
• E)will have more unemployment than country B.

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Definitions:

Subsidiary's Equity

The value of an owned entity's net assets, representing the interest held by its shareholders, including the parent company if it is a majority owner.

Acquisition Date

The date on which the acquirer obtains control of the acquiree.

General Reserve

Funds set aside out of profits for the future protection of the business and to strengthen its financial position.