Compared to Their Initial Positions at Points a and B

question 118

Multiple Choice

Compared to their initial positions at points A and B, as a result of complete specialization and trade, the output of the two countries added together in Figure 35.1 would result in an increase in

• A)Both DVD players and motorcycles.
• B)Motorcycles only.
• C)DVD players only.
• D)Neither DVD players nor motorcycles.

---

Definitions:

Journal Entries

Records of financial transactions in the accounting system, documenting the details of transactions and their impact on the accounts.

Debits

A transaction recorded in accounts that causes assets to grow or liabilities to shrink on a firm's balance sheet.

Credits

Accounting entries that increase liability or equity accounts, or decrease asset or expense accounts.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of assets, provision of services, or other means.