A Group Opposed to Free Trade Concludes That the Total

question 199

Multiple Choice

A group opposed to free trade concludes that the total number of domestic jobs will decrease because it estimates that 20,000 jobs will migrate abroad.The actual total loss is:

• A) probably greater than 20,000 because of the tariff effect.
• B) probably equal to 20,000 because of the import effect.
• C) probably greater than 20,000 because of the multiplier effect.
• D) less than 20,000 because the estimate ignores the jobs created in the industries that benefit from increased exports.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Expenses Closed

The process at the end of an accounting period where expense accounts are closed and their balances transferred to a summary account.

Owner's Capital

The amount of equity a business owner has invested in their firm or the net assets belonging to the owner.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a specified accounting period, facilitating the transfer of the net income or loss to owner's equity.