An Economic Analysis of the Burdens Imposed on the Colonists

question 26

Multiple Choice

An economic analysis of the burdens imposed on the colonists by the Navigation Acts for commodities that were imported from Europe via England can best be described as:

• A) A shift back in the demand curve and a resulting decrease in the price of the goods.
• B) A shift back in both the supply and demand curves.
• C) A shift out of the supply curve and a shift back in the demand curve.
• D) A shift back in the supply curve, which increases the price and decreases the quantity.

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Definitions:

GAAP

Generally Accepted Accounting Principles, which are a collection of commonly-followed accounting rules and standards for financial reporting.

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Write-down

An accounting procedure reducing the book value of an asset when its market value drops below the recorded cost, resulting in a non-cash expense.

Impaired Asset

An asset that has a market value less than its carrying value on the balance sheet, indicating that it may not generate future benefits worth its listed value.