Differences in Resource Endowments Are Differences in

question 80

Multiple Choice

Differences in resource endowments are differences in

• A)tariffs charged by each country
• B)consumption patterns across nations
• C)production patterns across nations
• D)the quantity, but not the quality, of resources available in different nations
• E)the quality and quantity of resources available in different nations

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Definitions:

Preferred Stock

A security that is similar to bonds in some respects and to common stock in others. Preferred dividends are similar to interest payments on bonds in that they are fixed in amount and generally must be paid before common stock dividends can be paid. If the preferred dividend is not earned, the directors can omit it without throwing the company into bankruptcy.

After-Tax Figure

The amount of money left after all applicable taxes have been subtracted from the gross or total amount.

Taxable Income

The amount of income that is used to calculate how much tax an individual or a company owes to the government.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company to be reinvested in its core business or to pay debt.