Net Exports of Goods and Services Increase When

question 172

Multiple Choice

Net exports of goods and services increase when

• A)exports of goods and services decrease and imports of goods and services do not change.
• B)consumption expenditure increases.
• C)exports of goods and services increase and imports of goods and services do not change.
• D)consumption expenditure decreases.
• E)imports of goods and services increase and exports of goods and services do not change.

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Definitions:

Sales Revenues

The total amount generated from selling goods or services before any expenses are subtracted.

Cash Operating Costs

The expenses a company incurs during its normal business operations that require cash payments, such as rent, utilities, and payroll.

Annual Depreciation

The portion of the cost of a fixed asset that is allocated as an expense in each accounting period during its useful life.

Simple Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the annual incremental net operating income divided by the initial investment cost.