The Two Neighbors of the United States Do a Lot

question 18

Multiple Choice

The two neighbors of the United States do a lot more trade with the United States than European economies of equal size.

• A) This contradicts predictions from gravity models.
• B) This is consistent with predictions from gravity models.
• C) This is irrelevant to any inferences that may be drawn from gravity models.
• D) This is because these neighboring countries have exceptionally large GDPs.
• E) This relates to Belgium's trade record with the U.S.

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Definitions:

Statement of Owner's Equity

A financial document that summarizes the changes in the equity of a company over a period, including investments, withdrawals, and the net income or loss.

Income Statement

A financial report summarizing the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year.

Revenues

Revenue earned by a company primarily through its sales of products and services to buyers, as part of its regular operations.

Owner's Equity

Owner's Equity refers to the owner's rights to the assets of the company after all liabilities have been deducted. It is also known as shareholders' equity or stockholders' equity.