Net Exports Are a Negative Number When

question 154

Multiple Choice

Net exports are a negative number when:

• A)a nation's imports of goods and services fall.
• B)a nation's imports of goods and services rise.
• C)a nation's exports of goods and services are greater than its imports.
• D)a nation's imports of goods and services are greater than its exports.

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Definitions:

Fixed Costs

Expenses that do not change with the level of output or sales in the short term.

Marginal Cost Curve

Graphical representation showing how the cost to produce one more unit changes as production increases, typically U-shaped due to economies and diseconomies of scale.

Average Total Cost Curve

A graphical representation showing the average cost per unit of output, calculated by dividing total costs (both fixed and variable) by the number of units produced.

Average Variable Cost Curve

A graphical representation that shows the relationship between a firm's total variable costs and output levels.