-Refer to Situation 31-L

question 88

Multiple Choice

-Refer to Situation 31-l. At the time the total yearly salary (including all the benefits) of the average auto worker was no more than $50,000 per year, and the cost per job saved was estimated at $160,000 per worker per year. We can conclude that

• A)import quotas are a cost-efficient way of saving jobs.
• B)the U.S.auto industry, through its lobbying efforts, managed to promote the general public interest.
• C)the net social benefits of import quotas were positive.
• D)all of the above
• E)none of the above

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Definitions:

Net Assets

The total assets of an entity minus its total liabilities, indicating the entity’s net worth or equity.

Common Stock

Equity securities that represent ownership interests in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and/or capital appreciation.

Expense Recognition

An accounting principle that dictates the conditions under which expenses are recognized and reported in financial statements.