Article Summary According to JP Morgan Chase,increased Shipments of Chinese Steel Over

question 370

Multiple Choice

Article Summary
According to JP Morgan Chase,increased shipments of Chinese steel over the past two years has generated a wave of protectionism from countries around the globe.Decreasing domestic demand and slower economic growth have resulted in a large increase in steel exports from China,driving down global prices.The almost doubling of Chinese steel exports since 2013 has steel mills in areas ranging from South Africa to Europe to India to the United States pushing their governments for protectionist measures against the Chinese-produced steel.
-Refer to the Article Summary.Assume countries initially enacted protectionist measures against Chinese steel imports.If these protectionist measures were eventually eliminated,then all else equal,the price of steel in those countries would ________ and the quantity of steel demanded in those countries would ________.

• A)increase;increase
• B)increase;decrease
• C)decrease;increase
• D)decrease;decrease

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Definitions:

Normal Balance

The side (debit or credit) on which increases are recorded in an accounting ledger; varies depending on the account type (asset, liability, equity, revenue, or expense).

Post Reference Column

A column in journal and ledger accounts that helps in cross-referencing entries between these two accounting records.

General Journal

A comprehensive record of financial transactions over the life of a company, listed in chronological order.

Assets

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