A Country's Trade Is Balanced When

question 8

Multiple Choice

A country's trade is balanced when

• A) its imports exceeds its exports.
• B) its government expenditures are equal to its tax revenues.
• C) its net exports equal to zero.
• D) its net exports are greater than zero.

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Definitions:

Net Operating Income

The profit generated from a company's operational activities after subtracting operating expenses from revenue.

Target Profit

The amount of net income that a company aims to achieve within a specific time frame.

Margin of Safety Percentage

The ratio that shows how much sales can decline before a business reaches its break-even point, expressed as a percentage.

Unit Variable Cost

The cost that varies with each unit produced, including materials and labor directly associated with production.