If Planned Aggregate Expenditures Are $300 Billion, Consumption Is $180

question 29

Multiple Choice

If planned aggregate expenditures are $300 billion, consumption is $180 billion, investment is $75 billion, government spending is $45 billion, there is a

• A) trade surplus of $300 billion.
• B) trade surplus of $600 billion.
• C) trade deficit of $300 billion.
• D) trade balance.

Understand the differences between merchant wholesalers, agents, and brokers in the distribution channel.

Identify the roles and functions of manufacturers' agents and selling agents.

Know how internet-based intermediaries function to connect buyers and sellers.

Describe the characteristics of manufacturers' branches and sales offices as wholesaling activities.

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Definitions:

Replacement Equipment

Items purchased to replace older assets within a business, ensuring operational efficiency and continuity.

Variable Cost Method

A cost accounting method that only applies variable costs to inventory, excluding fixed costs from cost of goods sold calculations.

Markup

Markup refers to the difference between the cost of a good or service and its selling price, expressed as a percentage over the cost.

Cost-Plus Approach

A pricing strategy where a fixed percentage or a fixed amount is added to the cost of producing a product to determine its selling price.