When Canada Imports Products or Services from the Rest of the World

question 41

Multiple Choice

When Canada imports products or services from the rest of the world,

• A) our trading partners become poorer.
• B) prices rise in import-competing industries.
• C) wages rise in import-competing industries.
• D) prices fall for Canadian consumers.
• E) wages fall in the rest of the world.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds; this expense is a non-operating cost that appears on the income statement.

Decimal Place

The position of a number to the right of a decimal point, indicating the precision or fractional part of the number.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership equity held by stockholders.

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.