Some Nations Establish Limits on the Amount of Earned and Invested

question 29

Multiple Choice

Some nations establish limits on the amount of earned and invested funds that can be withdrawn from it.These exchange controls are usually established by nations that:

• A)have a high trade surplus.
• B)are a part of larger trade agreements.
• C)are experiencing balance-of-payment problems.
• D)have an open economy.

---

Definitions:

Going Out of Business

The process of closing down all operations of a company, often due to financial troubles or bankruptcy.

Fixed Cost

Expenses that do not vary with the level of output or sales, such as rent, salaries, and insurance.

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and direct labor expenses.

Total Cost

The complete cost of production that includes both variable and fixed expenses.