Scenario 4-1 in a Given Year,country a Exported $12 Million

question 76

Multiple Choice

Scenario 4-1 In a given year,country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
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According to Scenario 4-1,country C has net exports of:

• A)zero.
• B)$13 million.
• C)$6 million.
• D)-$13 million.
• E)-$6 million.

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Definitions:

Common Stock

Represents ownership shares in a corporation, giving shareholders voting rights and a residue claim on corporate earnings in the form of dividends.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to investors, which are reinvested in the business.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.

Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.