The Entry of China and Other Developing Countries into the Global

question 232

Multiple Choice

The entry of China and other developing countries into the global economy ________ the value of marginal product of factory workers in the United States and ________ their wage rate.

• A) increases; lowers
• B) decreases; raises
• C) decreases; lowers
• D) increases; raises

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Definitions:

Current Assets

Liquid assets that a company owns and expects to use or convert into cash within a year or its operational cycle.

Cash

A company's currency or assets that can be immediately used for transactions or payments.

Supplies

Items that are used in the day-to-day operations of a business, often categorized as a current asset on the balance sheet.

Income Summary

The income summary account is used in accounting to transfer revenue and expense account balances to determine the net income or loss for a given period before closing them to the retained earnings account.