The Economic Status of the Average American at the End

question 17

Multiple Choice

The economic status of the average American at the end of the Revolutionary War was

• A) better than before the war.
• B) probably worse than before the war.
• C) about the same as before the war.
• D) more closely tied to Britain than before the war.
• E) more closely tied to France than before the war.

Differentiate between absolute and comparative advantage.

Understand the importance of opportunity cost in trade decisions.

Analyze production possibilities and potential benefits from trade.

Identify conditions under which trade is advantageous.

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Definitions:

Report Form

A form of balance sheet with the “Liabilities” and “Stockholders’ equity” sections presented below the “Assets” section.

Balance Sheet

A financial statement that displays a company’s assets, liabilities, and shareholders' equity at a specific point in time.

Multiple-Step Income Statement

An income statement that separates operating revenues and expenses from non-operating items to calculate net income in several steps.

Income From Operations

Financial gain accruing from the essential operations of an enterprise, without taking into account interest and tax deductions.