Which of the Following Describes the Effect of Economic Globalization

question 24

Multiple Choice

Which of the following describes the effect of economic globalization on wealthy nations like the United States?

• A) New openings in the global economy contributed to the expansion of the middle class.
• B) Jobs in the low-wage service sector declined and jobs in manufacturing sharply increased.
• C) A shifting global division of labor resulted in the loss of many manufacturing jobs.
• D) Increased total world output diminished income disparities and created economic equality.

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Definitions:

Commercial Substance

Commercial substance refers to a transaction that significantly changes the economic position or cash flows of a business, going beyond a mere formal exchange.

Straight-Line Method

A method of calculating depreciation by spreading the cost of an asset evenly over its useful life.

Residual Value

The estimated value of an asset at the end of its useful life.

Depreciation

The method of distributing the expense of a physical asset throughout its life span.