If the United States Had Negative Net Exports Last Year

question 341

Multiple Choice

If the United States had negative net exports last year, then it

• A)sold more abroad than it purchased abroad and had a trade surplus.
• B)sold more abroad than it purchased abroad and had a trade deficit.
• C)bought more abroad than it sold abroad and had a trade surplus.
• D)bought more abroad than it sold abroad and had a trade deficit.

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Definitions:

Total Contribution Margin

The difference between total sales revenue and total variable costs, representing the amount available to cover fixed expenses and generate profit.

Variable Cost

Costs that fluctuate with the level of production or sales, such as raw materials or commission fees.

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales activities within a certain range or period.

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in no net loss or gain.