Use the Following to Answer Questions

question 16

Multiple Choice

Use the following to answer questions :
Figure 18-2
-Which of the following is a true statement in reference to Figure 18-2?

• A)Country A exports wheat to Country B.
• B)Free trade harms Country B.since the price of wheat is greater than in equilibrium.
• C)A prohibitive tariff would lower the price of wheat in Country A.
• D)The diagram would require no modification if Country A improved its relative efficiency in wheat production.
• E)Free trade would lower the price of wheat in Country A.

---

Definitions:

Going Concern

The assumption that a company will continue its operations in the foreseeable future and has no intention of liquidating its assets.

Cash Flows from Operating Activities

The section of the cash flow statement that shows the cash generated or used by a company's primary business activities.

Property Plant and Equipment

Long-term assets used in the operations of a business, not intended for sale, including land, buildings, and machinery.

Investing Activities

Financial transactions involving the purchase and sale of long-term assets and investments not included in cash equivalents.