A Common Economically Unfounded Fear Held by Laypeople Is That

question 87

Multiple Choice

A common economically unfounded fear held by laypeople is that:

• A) globalization will result in the United States losing most jobs because wages are so much higher in the United States.
• B) globalization will result in dramatically higher prices because most services will be outsourced.
• C) the United States has a comparative advantage in the production of all goods.
• D) a U.S. trade surplus will result in a dramatically lower dollar.

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Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the company, held in the company's treasury and not considered when calculating earnings per share or dividends.

Par-Common Stock

The face value of common stock as stated in the corporate charter, which may differ from its market value.

Stockholders' Equity

The remaining value in a corporation's assets once all its debts have been subtracted, indicating the ownership stake.

Account Balances

The amounts of money held in or owed on an account at a particular point in time.