A Product Produced in a Foreign Country and Purchased by Residents

question 128

Multiple Choice

A product produced in a foreign country and purchased by residents of the home country is:

• A)an export.
• B)an import.
• C)savings.
• D)investment.

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or sales, such as raw materials and labor expenses.

Total Cost

The sum of fixed and variable costs incurred by a firm in the production of goods or services.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Average Total Cost

represents the per-unit total cost of production, calculated by dividing the total cost by the quantity of output produced.