In Terms of the World as a Whole,imports Must Equal

question 68

Multiple Choice

In terms of the world as a whole,imports must equal exports because

• A)The United Nations requires it.
• B)It is part of international law.
• C)Most countries,other than the United States,have a balanced trade situation.
• D)Every good exported by one country becomes an import for another country.

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Definitions:

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Net Income

The conclusive earnings of a firm after removing all financial outlays and tax obligations from its aggregate revenue.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, incorporating the income on the investor's income statement.

Amortization

The approach of progressively depreciating the initial investment in an intangible asset over its effective life.