In 2007, Franceʹs Exports Totaled $490 Billion and Its Imports

question 194

Multiple Choice

In 2007, Franceʹs exports totaled $490 billion and its imports totaled $529 billion.As a result ,the
i. rest of the world supplies funds to France.
ii. quantity of loanable funds in France is less than the supply.
iii. Ricardo-Barro effect occurs in France.

• A) i only.
• B) i, ii and iii.
• C) ii and iii only.
• D) i and ii.

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Definitions:

Operating Expenses

Recurring expenses related to the normal business operations, such as wages, rent, and utilities, but not including cost of goods sold.

Renovation Expense

Costs incurred in the process of improving or updating a property, structure, or equipment to increase its value.

Working Capital

The difference between a company's current assets and current liabilities, indicating the amount of liquid assets available for day-to-day operations.

Incremental Net Income

Net income resulting from a particular action or decision, calculated as the difference in total net income if the action is taken versus if it is not.