The Net Effect on the Corporation's Books of the Declaration

question 18

Multiple Choice

The net effect on the corporation's books of the declaration and payment of a cash dividend are to

• A)decrease liabilities and decrease shareholders' equity.
• B)increase shareholders' equity and decrease liabilities.
• C)decrease assets and decrease shareholders' equity.
• D)increase assets and increase shareholders' equity.

Identify the conditions under which a country becomes an importer or exporter of a specific good.

Understand the mechanisms through which world supply and demand determine world prices.

Analyze the impact of trade restrictions like tariffs and quotas on consumer surplus, producer surplus, and government revenue.

Explain the reasons for and against international specialization.

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Definitions:

Goods

Tangible items that are produced, bought, or sold, serving as objects of commerce and economic transactions.

Services

Activities or functions that are provided by individuals or organizations to fulfill the needs or wants of others.

Offshoring

Sending work or jobs to another country to cut a company’s costs at home (sometimes called international outsourcing and offshore outsourcing).

Work

The exertion of effort towards achieving a goal, completing tasks, or generating products or services, which may be compensated through wages or other forms of payment.