-If the Economy in the Diagram Above Is Open to Trade

question 10

Multiple Choice

-If the economy in the diagram above is open to trade and the world price of oil is $20 per barrel,then domestic production of oil equals _________ million barrels and domestic consumption of oil equals ________ million barrels.

• A) 7;12
• B) 12;12
• C) 12;18
• D) 18;7
• E) 7;18

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Definitions:

Bad Debts

Accounts receivable that are considered to be uncollectible, representing losses to the company.

Promissory Note

A monetary tool that includes a formal pledge from one entity to another to pay a certain amount of money, either when asked or on a predetermined date in the future.

Maturity Date

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.

Pledges Receivables

Amounts promised to be paid by donors to a fundraising organization or a charitable cause.