(I)With Trade,individuals Will Be Able to Use More of Their

question 93

Multiple Choice

(I) With trade,individuals will be able to use more of their time and resources producing items they can supply economically and less time and resources producing goods that they can supply only at a high cost.
(II) Reductions in trade barriers will expand the productive potential of the economy.

• A)I is true,II is false.
• B)I is false,II is true.
• C)Both I and II are true.
• D)Both I and II are false.

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Definitions:

Investment in Subsidiary

Refers to the holding of shares or interests by one company (the parent company) in another company (the subsidiary).

Goodwill

A non-material asset generated from purchasing another company at a cost exceeding the fair market value of its tangible net assets.

Paid-In-Capital Accounts

Accounts representing the funds contributed by shareholders over and above the nominal value of the shares; it's an equity item on the balance sheet.

Consolidating Journal Entry

A journal entry made in the process of combining the financial statements of several departments or subsidiaries into a single set of statements.