The Net Balance on the Balance of Payments Accounts

question 49

Multiple Choice

The net balance on the balance of payments accounts:

• A)always shows a surplus.
• B)always shows a deficit.
• C)is always zero.
• D)can show either a surplus or a deficit.
• E)is always positive.

---

Definitions:

Variable Cost

Variable costs are expenses that vary directly with the level of production or sales volume.

Target Profit

The predetermined amount of income that a company aims to achieve in a specific period.

Fixed Component

The part of total costs in a business that remains constant regardless of the level of production or business activity.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the vertical distances of the points from the line.