A Current Account Surplus

question 163

Multiple Choice

A current account surplus

• A)arises when a country's exchange rate rises.
• B)arises when the purchase of foreign assets by a nation's citizens exceed the purchase of domestic assets by a nation's citizens.
• C)is necessary for a long run economic growth.
• D)arises when exports exceed imports.

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Definitions:

Contribution Margin Per Unit

The difference between the selling price per unit and the variable cost per unit.

Pretax Income

The amount of income earned by a business before any taxes have been deducted, reflecting the company's profitability.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.

Pretax Income

The amount of income earned by a business before paying income taxes.