A Country with a Current Account Surplus

question 75

Multiple Choice

A country with a current account surplus:

• A) has imported more than it has exported.
• B) as borrowed heavily from the rest of the world.
• C) has exported more than it has imported.
• D) also has a capital account surplus.

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Definitions:

Direct Labor

The labor costs of all employees actually engaged in producing or directly working on a product.

Direct Materials

Raw materials that are directly used in the production of a product and can be easily traced back to the product.

Product Cost

The total amount of costs directly assigned to the creation of a product, including materials, labor, and overhead.

Operating Expenses

All the costs associated with the day-to-day operations of a business, excluding the direct costs of producing goods and services.