Exhibit 19.1 -Refer to Exhibit 19.1,which Shows the Market Equilibrium for Corn

question 180

Multiple Choice

Exhibit 19.1

-Refer to Exhibit 19.1,which shows the market equilibrium for corn in the United States.If the world price of corn is $2 and there are no trade restrictions,the United States will:

• A)produce 3,000 bushels of corn, consume 7,000 bushels of corn, and import 4,000 bushels of corn.
• B)produce 3,000 bushels of corn, consume 7,000 bushels of corn, and export 4,000 bushels of corn.
• C)have an excess supply of corn.
• D)produce 7,000 bushels of corn.
• E)produce 5,000 bushels of corn, consume 7,000 bushels of corn, and import 2,000 bushels of corn.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Income Attributable

The portion of net income (profit) that is available to the shareholders, after accounting for dividends to preferred stockholders and other adjustments.

Noncontrolling Interest

A stake in a company that is less than 50%, implying that the holder does not have control over the company's operations.

Equity Method

The equity method is an accounting technique used to record investments in associate companies where the investor has significant influence but does not control the company outright, typically identified by owning 20-50% of the voting stock.