Which of the Following Would Be Added to U

question 167

Multiple Choice

Which of the following would be added to U.S.national income?

• A)an American consumer buying French wine 
• B)an American business selling aircraft to British Airways 
• C)a Swedish firm selling mobile phones to Americans 
• D)a French firm buying a Swedish cellular phone

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Definitions:

EBIT

Earnings Before Interest and Taxes, a financial metric that calculates a firm’s profit excluding interest and income tax expenses.

Variable Cost

A cost that varies directly with the level of production or volume of output, as opposed to fixed costs, which remain constant regardless of activity level.

Direct Labor

The wages of employees who are directly involved in the production of goods or services.

Direct Materials

Raw materials that are used directly in the manufacturing of a product and can be directly attributed to the product.