Suppose That the Real Return from Operating Factories in Canada

question 8

Multiple Choice

Suppose that the real return from operating factories in Canada rises relative to the real rate of return in the United States.Other things the same,

• A)this will increases U.S.net capital outflow and decrease Canadian net capital outflow.
• B)this will decreases U.S.net capital outflow and increase Canadian net capital outflow.
• C)this will only increase U.S.net capital outflow.
• D)this will only increase Canadian net capital outflow.

Define and differentiate between disposable, discretionary, and gross income.

Appreciate the cultural value of social action and its impact on business practices.

Understand the concept of value consciousness among consumers.

Recognize how external economic forces like inflation and recession affect the overall economy and individual financial decisions.

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Definitions:

Revenue

Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise.

Expenses

The costs incurred by a business in the process of earning revenue, such as costs of goods sold, operating expenses, and taxes.

Debits

Entries that are recorded on the left side of accounting ledgers and journals, representing increases in assets or expenses or decreases in liabilities, equity, and income.

Assets

Resources owned by a company or individual that have economic value and can provide future benefits.