Which of the Following Is an Identity That Always Holds

question 210

Multiple Choice

Which of the following is an identity that always holds in an open economy?

• A) NCO + C = NX
• B) NCO = NX
• C) NX - NCO = C
• D) NX + NCO = Y

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Definitions:

General and Administrative

Expenses related to the day-to-day operations of a business that are not directly tied to production, including salaries of non-production staff, office supplies, and rent.

Direct Materials

Raw materials that are directly traceable to the production of a specific good or product.

Prime Costs

Refers to the direct costs of manufacturing a product, including direct materials and direct labor.

Conversion Costs

Expenses incurred when transforming raw materials into finished goods, typically including labor and overhead costs.