A Study of Japan's Opening to Trade in 1859 Showed

question 30

Multiple Choice

A study of Japan's opening to trade in 1859 showed that international trade increased the per capita income of Japanese. Why does Japan, in this case, offer an excellent "natural experiment"?

• A) Japan chose to have open trade in order to grow unlike other most other countries, so that it can be argued that the trade had the best chance to occur without being resisted by the government.
• B) Japan adopted open trade because of a conversion by its Tokugawa rulers to free trade, who allowed open trade to occur naturally without government interference.
• C) Japan only traded with the United States, allowing for a clear delineation of how it benefited from trade.
• D) Japan moved from having almost no trade to having open trade with the world and this move was not due to economic reasons.

Explain the principle of the law of demand.

Understand the role of individual buyers and sellers in competitive markets.

Differentiate between movements along the demand curve and shifts in the demand curve.

Understand the concept of market demand and how it is determined.

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Definitions:

Purchase Accounting

The process of consolidating and reporting the financials of a merger or acquisition by recording the assets and liabilities at their fair market values.

Business Combination

A transaction or other event in which an acquirer gains control over one or more businesses.

Consolidated Balance Sheet

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries into one document.

Noncontrolling Interest

A minority interest in a subsidiary that is not owned by the parent company, representing shareholders' equity in subsidiaries not attributable, directly or indirectly, to a parent.