-Using the Data in the Above Table, If the Government

question 196

Multiple Choice

$$\begin{array} { | l | l | } \hline \text { Item } & \begin{array} { l } \text { Billions of } \\\text { dollars }\end{array} \\\hline \text { Exp orts of goods and services, } X & \\\hline \text { Imports of goods and services, } M & 1,000 \\\hline \text { Net taxes, } T & \\\hline \text { Government exp enditure, } G & 1,300 \\\hline \text { Saving, } S & \\\hline \text { Investment, } I & 650 \\\hline\end{array}$$
-Using the data in the above table, if the government sector runs a deficit of $250 billion and net exports equal -$500 billion, then saving must equal

• A) $250 billion.
• B) $450 billion.
• C) $1,350 billion.
• D) $400 billion.

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Definitions:

Period Costs

Expenses that are not directly tied to the production of goods, such as administrative and selling expenses, and are expensed in the period they are incurred.

Period Costs

Expenses that are not directly tied to production activities and are expensed in the period they are incurred, such as administrative and selling expenses.

Product Costs

Expenses directly associated with the creation of a product, including direct labor, materials, and manufacturing overhead.

Finished Goods Inventory

Inventory of finished goods available for sale by a business.