What Does a Negative Amount of Net Exports in the GDP

question 32

Multiple Choice

What does a negative amount of net exports in the GDP expenditures accounting mean?

• A)Exports are less than imports.
• B)Imports are less than exports.
• C)Net exports have declined from the previous period.
• D)The sum of this period's exports and imports has declined from the previous period.

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Definitions:

Production Cost Report

A document summarizing the costs associated with producing a product, including materials, labor, and overhead.

Work In Process

Inventory items that are in the stage of production but are not yet complete; represents a portion of inventory that is in transition from raw materials to finished goods.

Total Materials Costs

The complete sum spent on raw materials required for the production of goods or services.

Process Cost System

A financial recording approach utilized for assigning expenses to alike items which are manufactured in bulk continuously.