A Favorable Balance of Trade Occurs When

question 229

Multiple Choice

A favorable balance of trade occurs when:

• A) goods exports are greater than goods imports.
• B) goods imports are greater than goods exports.
• C) international trade is an increasing share of total output.
• D) the balance on capital account equals the balance on current account.
• E) unilateral transfers are positive.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, including equipment maintenance, factory rent, and utilities.

Cost of Goods Sold

Costs incurred directly from the creation of a company's sold products, encompassing both the price of materials and the wages for labor.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.

Spreadsheet

A software tool that allows users to organize, analyze, and store data in a table with rows and columns.