Suppose a Country's Net Exports Equal Zero

question 27

Multiple Choice

Suppose a country's net exports equal zero.Which of the following will happen if the volume of exports increases without an increase in the volume of imports?

• A) The country will experience a trade surplus.
• B) The country will experience a trade deficit.
• C) The country will experience a budget deficit.
• D) The country will experience a budget surplus.

---

Definitions:

Time-Driven Activity-Based Costing

A costing method that assigns costs based on the actual duration of activities rather than on estimated overhead rates.

Customer Support Department

A functional unit within an organization tasked with providing assistance and guidance to customers before, during, and after a purchase.

Matching Capacity

The process of aligning a company's production capability with the demand for its products to optimize efficiency and minimize costs.

Impact on Expenses

The effect that a specific action or decision has on a company's total expenses.