Which of the Following Statements Is True

question 63

Multiple Choice

Which of the following statements is true?

• A)Exports benefit trading countries because exports create jobs. Imports do not benefit trading countries because they result in a loss of jobs.
• B)Each year China exports about 50 percent of its wheat crop and 40 percent of its rice crop.
• C)Most of the leading exporting countries are large, high-income countries.
• D)All sectors of the U.S. economy are affected equally by international trade.

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Definitions:

Replacement Cost

The amount of money required to replace an asset at the current market value.

Tobin's Q

A ratio comparing the market value of a company's assets to their replacement cost, used to evaluate whether a company is over or undervalued.

Earnings Management

The practice of using accounting techniques to produce financial reports that may mislead stakeholders about a company's financial condition.

Pro Forma Earnings

Pro forma earnings refer to a company's earnings that exclude certain costs or expenses, typically non-recurring items, to provide a clearer picture of its financial performance.