When a Nation Exports a Good or Service,the Nation's Consumer

question 193

Multiple Choice

When a nation exports a good or service,the nation's consumer surplus ________,its producer surplus ________,and its total surplus ________.

• A) increases; decreases; increases
• B) increases; decreases; decreases
• C) increases; increases; increases
• D) decreases; decreases; decreases
• E) decreases; increases; increases

---

Definitions:

Net Realizable Value

The estimated selling price of an item in the ordinary course of business minus any costs associated with the sale or disposal of the item.

Bad Debt Expense

An estimated expense that represents the amount of receivables that a company does not expect to collect due to customers' inability to pay.

Credit Balance

This occurs when the total credits in an account exceed the total debits, often indicating money owed to a customer or client.

Adjusting Entry

An amended bookkeeping entry made to rectify or allocate transactions to the appropriate accounting period or ensure that revenues and expenses are recorded in the period they occur.