If Every Country in the World Adopted an Open Borders

question 44

Multiple Choice

If every country in the world adopted an open borders immigration policy,which of the following would happen?

• A) Purchasing power parity would cease to hold.
• B) Purchasing power parity would hold more closely.
• C) There would be no change in the degree of purchasing power parity.
• D) Currencies would depreciate.

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Definitions:

Estimated Useful Life

The expected period over which a company anticipates deriving benefits from an asset before it becomes obsolete or too costly to maintain.

Units-Of-Production Depreciation

A depreciation method that allocates the cost of an asset over its useful life based on its output or usage rather than the passage of time.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual increments.

Expected Production

The forecasted amount of goods or services a company plans to produce in a specific period based on demand and capacity planning.