Technological Changes Have Changed Production Worldwide Toward the Application of Jcomputers

question 167

Multiple Choice

Technological changes have changed production worldwide toward the application of Jcomputers to manufacturing processes. How does this affect countries that have a
Jcomparative advantage in the production of high-tech equipment, such as the United States?

• A) U.S. high-tech equipment manufacturers will face increased competition.
• B) U.S. exports will rise because of an increased demand for high-tech equipment.
• C) In the U.S., the cost of producing high-tech equipment will rise because of greater demand.
• D) U.S. imports will rise because the increased demand for high-tech equipment will require an increase in raw materials and other inputs.

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Definitions:

Income Statement

A financial report that shows a company's revenues, expenses, and profit over a particular period.

Retirement of a Bond

The repayment of the principal amount of a bond at or before its maturity date, effectively extinguishing the debt.

Other Comprehensive Income

Specified items that are reported separately from net income, including foreign currency items, pension liability adjustments, and unrealized gains and losses on investments.

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period, typically including balance sheets, income statements, and cash flow statements.