Consider the Following Statement: "Without a Doubt,free Trade Improves the Lives

question 101

Multiple Choice

Consider the following statement: "Without a doubt,free trade improves the lives of every Canadian citizen." This statement is ________ because ________.

• A)correct; it is consistent with the idea of comparative advantage
• B)correct; because Canada has long been a successful trading nation
• C)incorrect; it fails to recognize that the movement to free trade involves both winners and losers
• D)incorrect; we do not know much about the benefits of free trade
• E)correct; there are no net costs associated with the movement to free trade

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Definitions:

Consolidated Retained Earnings

The accumulated profits of a corporation and its subsidiaries after dividends have been paid out to shareholders.

Consolidated Statement

A financial statement that aggregates the financial position and operations of a parent company and its subsidiaries, presenting them as a single economic entity.

Income Tax Calculations

The process of determining the tax payable to the government based on earned income, after allowances and deductions are applied.

Outstanding Common Shares

Refers to the total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.