According to the text, differences in taste, a demand variable, can reverse the direction of trade predicted by the theory.
Answer the following statement true (T) or false (F)
True
According to Linder's theory of overlapping demand, customers' tastes are strongly affected by their income levels, and therefore a nation's level of income per capita determines the kinds of goods its people will demand. For example, countries with high levels of average income may have substantial levels of demand for items such as large display televisions, high-fashion branded clothing, jewelry, luxury automobiles, and gourmet foods and beverages. In contrast, countries with low average incomes may exhibit greater demand for simpler and more basic items of food, clothing, and shelter. Goods produced for domestic consumption will eventually be exported to countries that have similar levels of income, and therefore, demand. This suggests that international trade in manufactured goods will be greater between nations with similar levels of per capita income than between those with dissimilar levels of per capita income. Even though two developed countries may have similar resource endowments, they still can have a large volume of trade in goods for which both countries have a demand.
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Indicate whether the statement is true or false
When an accountant is asked to compile financial statements that omit substantially all of the required disclosures, which of the following actions is appropriate?
a. The CPA cannot accept the engagement. b. The CPA may accept the engagement. c. The CPA may accept the engagement if the CPA believes the omission is not undertaken to mislead users. d. The CPA must express an adverse opinion.
You have just put $5,000 into an investment that offers a 10% annual yield, using a simple interest calculation. At the end of two years your interest earned will be
A) $500. B) $550. C) $1,000. D) $1,100.
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A. $18,690 B. $19,300 C. $19,910 D. $4550 E. $5250