The Concern of Economists with Respect to the Trade Deficit

question 29

Multiple Choice

The concern of economists with respect to the trade deficit is whether it is

• A) sustainable at current levels.
• B) desirable at current levels.
• C) under-specified.
• D) overestimated.
• E) the result of the financial crisis.

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Definitions:

Cost-to-Retail Ratio

A method used in inventory accounting that calculates the cost of goods available for sale as a percentage of the retail price of the goods.

Net Markdowns

Net markdowns represent the reduction in the selling price of goods or products, often reflecting changes in market demand or stock clearance needs, net of any markdown cancellations.

Ending Inventory's Valuation

The process of assigning value to the inventory that is still on hand at the end of an accounting period.

Retail Inventory Method

An accounting method used by retailers to estimate their inventory's ending value by using a cost to retail price ratio.