If the USHas Exports of $1

question 182

Multiple Choice

If the U.S.has exports of $1.5 trillion and imports of $2.2 trillion,then the U.S.

• A)sells more overseas then it buys from overseas;it has a trade deficit.
• B)sells more overseas then it buys from overseas;it has a trade surplus.
• C)buys more from overseas then it sells overseas;it has a trade deficit.
• D)buys more from overseas then it sells overseas;it has a trade surplus.

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Definitions:

Variable Maintenance Cost

Costs that change in proportion to the operational activity of a company, such as repairs and maintenance expenses that vary with usage.

Mixed Cost

A cost containing both variable and fixed cost elements, changing in total with activity level but not proportionately.

Direct Labor Hours

The total time workers spend producing a product or providing a service, directly tied to the production process.

Contribution Margin Ratio

A financial metric that shows what percentage of sales revenue is available to cover fixed costs and generate profit after variable costs have been paid.