If the Average Income of an Australian Is Higher Than

question 118

Multiple Choice

If the average income of an Australian is higher than the average income of a Russian,what is the most likely reason

• A)Productivity is higher in Australia than in Russia.
• B)Australia has a more industrial economy than Russia.
• C)There is more competition in Australia than in Russia.
• D)Labour unions are more aggressive in Australia than in Russia.

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Definitions:

Current-Rate Method

An accounting method used in translating the financial statements of a foreign subsidiary, where all current and non-current items are translated at the current exchange rate.

Functional Currency

The primary currency used by a business or entity in its daily operations.

South African Rand

The South African Rand is the official currency of South Africa, denoted by the symbol ZAR.

Functional Currency

The currency of the primary economic environment in which an entity operates and carries out its transactions, used in its financial reporting.